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Xu Jiayin's umbrella? PwC and the lost soul of auditing

author:Official nationwide traffic card

A sudden storm swept through the world-renowned accounting firm - PricewaterhouseCoopers, pushing it to the forefront of public opinion, the former industry giant, but now mired in a crisis of confidence, its fate affects the hearts of countless people

Xu Jiayin's umbrella? PwC and the lost soul of auditing

Uncover the tip of the iceberg of financial fraud

It all started with a whistleblower letter that went viral on the Internet, which was like a bombshell, revealing the shocking inside story of PwC's Asia-Pacific head allegedly being involved in covering up a huge financial fraud, and instantly detonated public opinion

Xu Jiayin's umbrella? PwC and the lost soul of auditing

If the contents of the letter are true, then the world-renowned audit giant is equivalent to putting himself on the trial bench, which is not only a heavy blow to PwC's reputation, but also a serious question about its professional ability and professional ethics

Xu Jiayin's umbrella? PwC and the lost soul of auditing

The flight of customers and the panic of the market

The shock wave brought by the whistleblower letter quickly swept the entire market, and those clients who once believed in PwC have now chosen to flee, drawing a line with it, banks, real estate developers, central enterprises, listed companies...... Behind these names represent huge amounts of money and an important economic lifeline, and their departure is undoubtedly the most severe blow to PwC

Xu Jiayin's umbrella? PwC and the lost soul of auditing

The huge loss of 6 billion yuan is only the tip of the iceberg brought about by this crisis of trust, and what is even more worrying is that the reputation and brand image that PwC has worked hard for many years have collapsed in a short period of time, and this loss cannot be measured by money

Xu Jiayin's umbrella? PwC and the lost soul of auditing

The auditing profession is facing unprecedented challenges

The outbreak of the PwC incident shook the entire accounting industry like a strong earthquake, and the credibility and authority of the auditing industry, as an important part of maintaining the order of the market economy, have been challenged like never before

Xu Jiayin's umbrella? PwC and the lost soul of auditing

If even an industry giant like PwC can't guarantee the authenticity and reliability of its audit reports, how can investors and regulators trust other accounting firms? This is undoubtedly a question worth pondering

Xu Jiayin's umbrella? PwC and the lost soul of auditing

There is still a long way to go to rebuild trust

The PwC incident has sounded the alarm for the entire accounting industry, and also triggered a deep reflection on the development of the industry and the regulatory system

Xu Jiayin's umbrella? PwC and the lost soul of auditing

It is necessary to strengthen industry self-discipline and improve the professional ethics of practitioners, and accountants, as "economic police", must adhere to the bottom line of professional ethics, take safeguarding the public interest as their own responsibility, and earnestly perform their auditing duties

Xu Jiayin's umbrella? PwC and the lost soul of auditing

Regulators should strengthen the supervision of accounting firms, discover and correct problems in a timely manner, crack down on violations of laws and regulations, and maintain market order and the interests of investors

It is necessary to strengthen industry self-discipline and improve the professional ethics of practitioners, and accountants, as "economic police", must adhere to the bottom line of professional ethics, take safeguarding the public interest as their own responsibility, and earnestly perform their auditing duties

Can PwC emerge from the gloom?

There is still a long way to go for PwC to get out of its current predicament and rebuild trust, which requires PwC to face up to the problem, reflect deeply, and take practical and effective measures to recover losses and rebuild its brand image

This also requires the joint efforts of the entire accounting profession to strengthen industry self-discipline, improve the regulatory mechanism, and improve the quality of auditing, so as to ultimately rebuild the confidence of investors and the public in the industry

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