EY fined, barred from German audits over Wirecard affair

EY fined, barred from German audits over Wirecard affair
Image: Reuters

Monday, the German accounting watchdog punished the auditing company EY, which was identified as Wirecard’s auditor for the years 2016-2018, and banned it from auditing public interest groups for the next two years.

APAS, a watchdog organization, wrote EY to inform them that their investigation was complete, but they were not informed of the contents of their decision.

APAS said in a statement that it has taken action against Wirecard’s auditing company and five individual auditors, without naming EY. In the annual report of Wirecard, EY is identified as the company’s auditor.

Wirecard filed for bankruptcy in June 2020, owing roughly $4 billion to creditors, after exposing a 1.9 billion euro accounting hole that EY said was the result of a complex global fraud scheme.

The company, which has been since 1999, began by processing transactions for adult entertainment and gambling websites before rising to fintech prominence and entering Germany’s DAX market for blue-chip stocks.

APAS said that the auditor committed breaches of duty in respect to the matter.

The auditor will be prohibited from bidding on audits of particular companies for two years. This includes not just publicly listed companies but also the great bulk of the banking and insurance sectors.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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