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Ukraine bans PwC from auditing banks after PrivatBank failure

Neil Hodge | August 14, 2017

What is the world coming to if you can’t trust a couple of unsavoury oligarchs to run the country’s largest bank without emptying it for themselves? And perhaps worse still—how do you trust the professional advisors that signed off the accounts for nearly twenty years without ever spotting that such a scenario could occur?

Last month Ukraine’s central bank banned Big Four professional services firm PricewaterhouseCoopers (PwC) from conducting bank audits after finding that PrivatBank, the country's top lender, had developed a US$5.5bn hole in its accounts—seemingly without anyone realising—while under the auditor’s supervision.

Ukrainian authorities are now investigating whether PwC waved through the accounts of a bank that was allegedly bled dry by two oligarchs—Gennadiy Bogolyubov and Igor Kolomoisky—who are suspected of taking the money to fund their own business interests.

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