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Chinese authorities found that PwC failed to identify significant misstatements in Evergrande’s financial statements between 2018 and 2020. This oversight contributed to Evergrande’s collapse, which has had far-reaching consequences for the Chinese property market.

PwC, which had anticipated the ban and fine, has acknowledged the failings in its audit work and has taken steps to address the issue, including dismissing staff and implementing a remediation programme. However, the damage to PwC’s reputation in China is significant, and the firm has already lost some clients.

Mohamed Kande, global chair of PwC, said: “The work performed by PwC Zhong Tian’s Hengda audit team fell well below our high expectations and was completely unacceptable. It is not representative of what we stand for as a network and there is no room for this at PwC.

“That is why, following a thorough investigation, we ensured that actions were taken to hold those responsible to account and a comprehensive remediation programme will build a stronger PwC China firm for the future.

“China remains an important part of the PwC network and I remain confident in the China firm’s partners and staff as we work together to rebuild trust with stakeholders.”