PwC invests in 'high quality' business in China after record fine, internal memo says

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HONG KONG: PwC is making "tangible investments" to ensure the Big Four firm has high quality and sustainable business in China, it said in a memo to staff after Chinese regulators on Friday (Sep 13) hit the company's mainland unit with a record penalty.

A building housing the PricewaterhouseCoopers branch office stands behind a Chinese national flag in Beijing, on Jan 24, 2014. HONG KONG: PwC is making"tangible investments" to ensure the Big Four firm has high quality and sustainable business in China, it said in a memo to staff after Chinese regulators on Friday hit the company's mainland unit with a record penalty.

"We want to recognise that this has been an extremely challenging period for all of you," said the PwC internal memo issued late on Friday after the regulatory penalty announcement, and reviewed by Reuters. PwC appointed its global risk and regulatory leader Hudson to replace China territory senior partner Daniel Li as part of its remedial actions. Li stepped down given his"former responsibilities" as head of the local auditing business.

"One of my areas of focus will be on spending time with you and looking at ways of further developing our talent, including investing in you as our people," Hudson said in the memo."We do not believe that the behavior of a very small number of engagement team members is representative of the work of the vast majority of PwC China's 18,000 professionals," it said.

 

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