PricewaterhouseCoopers (PwC), one of the world’s largest accounting firms and a key auditor for major consumer electronics and appliance companies in Australia, is facing mounting regulatory pressure and reputational damage following a series of fines, investigations and audit failures across multiple jurisdictions.

In Hong Kong, this week PwC has agreed to pay A$179 million to independent minority shareholders of China Evergrande Group over its failure to properly audit the now-liquidated property developer. The settlement follows findings by regulators that Evergrande’s financial statements contained significant inaccuracies.

The Hong Kong Securities and Futures Commission said its investigation uncovered market misconduct linked to Evergrande’s dissemination of “false and misleading financial information” and cited “serious breaches of auditors’ professional duties.” The watchdog found the company’s audited revenue was overstated by 44.79 per cent in 2019, and by 350.2 per cent and 69.03 per cent in 2020.

Regulators also said PwC failed to maintain auditor independence and was involved in the disclosure of misleading financial information. Earlier this month, Hong Kong authorities imposed an additional $55 million fine and sanctions on the firm.

The Evergrande scandal has had wider consequences for PwC’s operations in the region. In 2024, Chinese regulators fined the firm’s mainland China arm a total of $88 million and imposed a six-month ban on conducting business. The fallout led to the loss of major clients and significant layoffs across PwC’s China and Hong Kong offices.

In Australia, PwC is also under scrutiny following a separate controversy involving the misuse of confidential government information. A partner was found to have shared sensitive tax policy details with colleagues and clients, enabling companies to circumvent impending tax laws. Subsequent investigations revealed the conduct extended beyond a single individual, pointing to broader knowledge within the firm.
Fresh concerns have now emerged over PwC’s role as long-time auditor of Corporate Travel Management (CTM), a company widely used by suppliers. According to reporting by The Australian Financial Review, Deloitte—after taking over as auditor—quickly identified insufficient evidence supporting CTM’s booking of large British contracts.

Deloitte reportedly found similar issues in prior accounts that had been signed off by PwC and warned CTM of significant problems. The concerns prompted CTM to engage KPMG to conduct an independent review of its UK operations.

KPMG’s findings revealed that CTM had overcharged the British government and other customers by up to $242 million (£128 million), a figure substantially higher than the A$151 million initially disclosed by the company.

The developments have raised broader questions about PwC’s audit quality and internal governance. Internal reviews have pointed to systemic issues within the firm, including excessive concentration of power among leadership and weak oversight structures.

Observers have described PwC’s culture as prioritising “growth at all costs,” with high-performing partners treated as largely untouchable. Concerns have also been raised about a lack of accountability and insufficient internal challenge mechanisms, with critics arguing that a profit-driven environment has undermined ethical standards and controls.
PwC did not respond to requests for comment.