German regulator examines auditor EY over Wirecard accounts
04 Aug 2020

The German body in charge of regulating auditors is examining the work of EY, the auditor that approved the books of collapsed payment services firm Wirecard, the German Economy Ministry said on Monday.

The ministry said Auditors’ Regulator (Apas) had upgraded a preliminary investigation that had been running since October 2019, when the Financial Times first reported allegations of fraud at Wirecard, into a full formal regulatory inquiry.

The ministry gave no further details.

Handelsblatt newspaper, which first reported that the inquiry was underway, said the regulator was examining all audits that EY had conducted of Wirecard’s accounts since 2015. The regulator has the power to check earlier submitted accounts and audits.

“A preliminary inquiry was launched in October 2019,” the ministry said in a statement. “In May 2020, after KPMG’s report came out, that was turned into a full regulatory inquiry, which is still underway.”

EY, Wirecard’s auditor for more than a decade, said it was assisting the authorities with their investigations.

By Thomas Escritt, Christian Kraemer, Hans Seidenstuecker and Douglas Busvine, Reuters, 3 August 2020

Read more at Reuters

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