EY fined, banned from some audits in Germany over Wirecard scandal

BERLIN, April 3 (Reuters) – Germany’s accounting watchdog on Monday handed the 2016-2018 auditor of Wirecard, named EY in the company’s annual reports, a fine of 500,000 euros ($541,650.00) and banned it from undertaking new audits for public companies. interest for two years.

EY said in an email that it had been informed by watchdog APAS that an investigation into the company had been completed, but that it had not been briefed on the details of the decision.

APAS said in a statement that it had imposed sanctions on Wirecard’s audit firm and five individual auditors, without referring to EY by name. Wirecard’s annual report appoints EY as auditor for this period.

Wirecard filed for insolvency in June 2020, owing creditors nearly $4 billion, after revealing a €1.9 billion hole in its accounts that EY said was the result of a sophisticated global fraud.

The company, founded in 1999, began processing payments for gambling and pornography websites before becoming a fintech star and a member of Germany’s blue chip DAX index.

APAS found a breach of duty by the auditor in connection with the scandal, it says.

The ban prohibits auditors from participating in tenders for the audit of certain companies for two years. This includes all listed companies as well as the majority of the financial sector consisting of banks and insurance companies.

($1 = 0.9231 euros)

Reporting by Joern Poltz, writer Linda Pasquini, editing by Kirsti Knolle and Friederike Heine

Our standards: Thomson Reuters Trust Principles.

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