Discipline

The AFRC has sanctioned PwC and two of its former partners and registered responsible persons, Mr Cheung Siu Cheong and Mr Chow Sai Keung, for misconduct in connection with PwC’s audits of the consolidated financial statements of: (i) China Evergrande Group (in liquidation) (previous stock code: 03333, delisted) and its subsidiaries for the years ended 31 December 2019 and 2020; (ii) Evergrande Property Services Group Limited (stock code: 06666) and its subsidiaries for the year ended 31 December 2020; and (iii) China Evergrande New Energy Vehicle Group Limited (stock code: 00708) and its subsidiaries for the year ended 31 December 2020.

The Court of Appeal dismissed the applications by the regulatees for (i) leave to appeal against the Tribunal's determination and (ii) a stay of execution of the AFRC's decision notices, fully endorsing the reasoning of the AFRC’s disciplinary decision and the Tribunal's determination. The Court of Appeal further ordered the regulatees to pay the AFRC’s costs of the applications.

The AFRC has taken disciplinary action in three cases involving breaches of statutory registration obligations and independence requirements under the Code of Ethics for Professional Accountants.