Germany Bans Ernst & Young From Audits After Wirecard Scam

Germany's accounting watchdog on Monday handed the 2016-2018 auditor of Wirecard, named in the company's annual reports as Ernst & Young (EY), a 500,000 euro fine ($541,650.00) and banned it from taking on new audits for companies of public interest for two years, Joern Poltz and Linda Pasquini reported for Reuters.

Photo Insert: APAS said in a statement that it had imposed sanctions on Wirecard's auditing company and five individual auditors, without referring to EY by name.

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 auditing company and five individual auditors, without referring to EY by name. Wirecard's annual report names EY as the auditor for that period.

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

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

APAS found breaches of duty by the auditor in connection with the scandal, it said.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic