Raymond Doherty 24 Jul 2017 02:32pm

Ukraine bans PwC from audit work

The National Bank of Ukraine (NBU) has banned PwC from audit work over an accounting black hole worth billions

The Ukraine’s central bank said it was removing the Big Four firm from its authorised register because it verified misrepresented financial statements of the leading Ukrainian retail and commercial bank, PrivatBank.

PrivatBank was nationalised in December 2016 after the NBU identified a $5.4bn capital shortfall in its finances. PwC audited PrivatBank from 2007 until 2015.

In a statement announcing the removal of the firm, NBU said, “The audit report issued by PricewaterhouseCoopers Audit LLC failed to highlight the credit risk exposure faced by PRIVATBANK PJSC, which led to the bank being declared insolvent and nationalised, with substantial recapitalisation costs borne by the state.”

PwC said it was disappointed with the decision. It said, “We do not believe that the reasons given by the NBU justify its decision. We will examine all options for reversing this decision.

“We remain committed to the Ukrainian market and to serving our clients in Ukraine across all our lines of business.”

In 2015-2016, the NBU barred a total of nine accounting firms from auditing banks for audit policy violations.