There are 2 big problems there.
When people always ask me about the large frauds we’ve dealt with, they ask, who were the auditors?
And I say, who cares?
Every great fraud was basically audited, most of the time by major firms.
In China it’s even worse than that because although the statements might say Pricewaterhouse, if you read the fine print it actually says, “Pricewaterhouse reviewed the work by an affiliate in China.”
So it’s often a smaller firm that has a relationship with the big firm that actually does the auditing.
Pricewaterhouse just puts its stamp of approval on that.