"PwC and China-Based Accounting Firms Slapped with $7 Million in US Fines for Audit Exam Cheating"

The US Public Company Accounting Oversight Board (PCAOB) has fined PwC's China arm $7 million for failing to prevent widespread cheating by its staff during internal training exams in mainland China and Hong Kong. The penalties are the first enforced against Chinese companies since a 2022 agreement allowing US regulators to investigate firms in mainland China and Hong Kong. PwC workers engaged in improper answer sharing, resulting in a gross violation of quality control standards. PwC Hong Kong and mainland China have been ordered to pay $4 million and $3 million, respectively. The PCAOB has also penalized a mainland Chinese accounting firm, Shandong Haoxin, for violations including issuing a false audit report.