The Bank Audit Committee has removes BDO Ltd from the Register of Auditors entitled to audit banks.
Over the past two years, the National Bank of Ukraine has repeatedly revealed the auditor's non-compliance with the auditing requirements, including the improper performance of the auditor's duties.
Based on the findings of the review of the auditor’s opinions conducted the regulator, it was revealed that BDO Ltd verified incorrect information contained in the annual financial statements for 2015.
Additionally, in violation of Article 70 of the Law of Ukraine On Banks and Banking BDO Ltd failed to notify the NBU in writing about the misrepresentation of financial statements, violations and weaknesses in the bank's operation revealed during the audit process, which could lead to the bank’s insolvency, including heavy losses of regulatory capital.
“Banks’ financial statements should serve as a source of credible information for all its stakeholders. Audit firms play a critical role in this process as audit reports should verify the credibility of information presented in financial statements,” said NBU Deputy Governor Ms Kateryna Rozhkova. “Significant progress has been made in ensuring compliance with auditing standards, except for this disappointing case. This refers to more qualified aditor’s opinions, with the regulator being informed about the irregularities and weaknesses revealed in the audit process.
In September 2015, the NBU banned eight audit firms from auditing banks: Donetskinaudit LLC, Audit Firm UKRVOSTOKAUDIT LLC, Ukrainian Audit Service LLC, Audit Firm UKRVOSTOKAUDIT LLC, Blyskor Audit Firm LLC, Audit Firm Consultant LLC, Audit Firm Oratania LLC, Audit Firm STAVR PC, and Fincom-audit LLC.