Fuel to the audit fire

The Econmist has a report that PricewaterhouseCoopers has withdrawn 10yrs of audit reports from the Russian oil company Yukos that was declared bankrupt last year after falling foul of tax authorities who imposed crippling tax penalties.

Leaving aside the absurdity of being able to change your audit opinion retrospectively, one wonders if investors might now have a legitimate claim against the firm for damages. After all, they have effectively admitted their opinions were wrong over a prolonged period. Moreover, they insist that this change of heart was Government inspired/encouraged/influenced, so it is their own decision.

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