Hong Kong’s audit regulator said on Monday it has initiated an enquiry into the financial statements of China Evergrande Group’s property services unit and its former auditor after questions were raised following the developer’s probe into seized deposits worth $2 billion of the unit, reports Reuters.
The Financial Reporting Council (FRC) said in a statement it was investigating the 2020 and first half of 2021 financial statements of Evergrande Property Services, as well as the audit carried out by PwC on its 2020 annual accounts.
“The FRC identified questions about the classification of restricted bank deposits and other loans, the measurement of pledge guarantees given and the disclosure of related party transactions in the accounts, and related questions about the audits,” it said.
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