THE relationship between the Big Four consulting firms and Chinese corporations is being significantly affected as scrutiny of PwC's audit of the bankrupt developer China Evergrande tightens accounting procedures, reports Nikkei Asia.

Regulators in the city have launched an investigation into PwC over whistleblower allegations about the firm's handling of Evergrande, the world's most-indebted developer, with over US$300 billion in liabilities. The developer is now in liquidation under a Hong Kong court order.

"It's not a good thing for the Big Four," said one senior partner at one of the firms which include PwC, KPMG, EY and Deloitte. "[All of us] will be more conservative taking clients on board," said the partner, who declined to be identified.

In 2018, Evergrande was the most valuable real estate company in the world, but by 2021 it had collapsed financially and started the Chinese property sector crisis. The company eventually filed for bankruptcy in the United States in 2023, which was followed by a court-ordered liquidation in Hong Kong earlier this year.