China Evergrande Group said PwC resigned as its auditor on Monday, adding to the pressure on the developer at the epicenter of China’s property crisis, reports Bloomberg.
Evergrande’s board recommended the resignation of PwC after the two firms couldn’t “agree on the timetable and the scope of work in respect of the assessment on the group’s going concern basis,” as well as the “procedures required for the assets impairment assessment,” according to a regulatory filing.
In its January 16 resignation letter to Evergrande’s audit committee and board, PwC noted it still hadn’t received information relating to “significant matters” of the 2021 audit. That included cash flow forecasts, the net realizable value of the group’s properties under development and even the consolidated financial statements of the group, the filing said.