Country Garden Holdings announced on Thursday that PricewaterhouseCoopers (PwC) has resigned as its auditor, following the property developer's recommendation. This move comes as PwC faces scrutiny over its role in auditing China's Evergrande Group, which was accused of a $78 billion fraud earlier this year.
As a result of the controversy surrounding PwC, more than 50 Chinese firms, including major clients like Bank of China, have either dropped PwC as their auditor or decided not to hire the firm. Country Garden has now appointed Hong Kong-based Zhonghui Anda CPA as its new auditor.
In a statement, Country Garden cited PwC's inability to meet the company's timetable requirements for publishing audited financial statements as the reason for the change. The company emphasized that it is in the best interests of its shareholders, creditors, and stakeholders to appoint a new auditor and complete the audit work promptly.
Analysis:
This development highlights the importance of choosing a reliable auditor for companies, especially in the wake of financial scandals like the one involving Evergrande. Investors should pay attention to auditing firms' reputations and track records when evaluating potential investments. A change in auditors can also impact a company's stock price and investor confidence, making it crucial for shareholders to stay informed about such developments.
