Comments by "Kevin Street" (@Kevin_Street) on "Evergrande Got a Clean Bill of Health From PWC Months Before Collapse" video.

  1. If Evergrande's company headquarters was on fire they might have issued a due diligence assessment.
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  2. I'm reminded of that term you used in previous videos: moral hazard. Price Waterhouse was perfectly aware of the problems with Evergrande, but they assumed along with everybody else that the Chinese government would step in if and when the problems became too serious to ignore. Their job was basically ceremonial, and their purpose was to maintain the confidence of the hoi polloi. Kind of like a priest who blesses the field before a football game. If they actually did their stated job of auditing properly, they'd be failing to do their real job of keeping everyone calm. That certainly doesn't excuse any of the American and British examples you mention, though. You'd think auditors would want to do their job in countries where there's no government bailout coming if firms fail.
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