Balance sheet scandal: auditor about Wirecard: Extensive fraud

The auditing company EY in the Wirecard scandal of serious crime in virtually global in scale. "There is strong evidence that it is a complete fraud, involving

Balance sheet scandal: auditor about Wirecard: Extensive fraud

The auditing company EY in the Wirecard scandal of serious crime in virtually global in scale. "There is strong evidence that it is a complete fraud, involving multiple parties around the world and in different institutions were involved with the specific intention to deceive," said EY on Thursday in Stuttgart.

"In the framework of the audit for fiscal year 2019, EY discovered that the fake balances were submitted confirmations, and other fake documents for the fiduciary accounts." EY have communicated to the competent authorities, as well as the organization and of its Supervisory Board.

"a Conspiratorial fraud, designed to deceive the investors and the Public, is often accompanied by extensive efforts to forge a systematic and large-scale documents," it said further in the message. "Also, with the extensive, extended audit procedures, it may not be possible, this type of collusive fraud."

"In financial supervision to heads will roll"

EY is one of the "big Four" international audit companies. The company had been audited in the past few years, the Wirecard-annual financial statements of Wirecard. That is why EY is now with the sharp criticism faced, to have the alleged manipulation is not detected earlier. The testing company, especially a massive reputational harm, in addition to a wave of lawsuits.

at the best of times Wirecard in the stock market nearly 25 billion euros in value. But the story of the successful Fintech from Germany proved to be an Illusion. "It was shocking to see that two-thirds of the revenue existed only on paper," said one Insider, the news Agency Reuters. "There is a healthy core, but there is no Chance for the debts of 3.5 billion euros to repay."

it tries to set The financial Supervisory authority, Bafin, at least for the subsidiary Wirecard Bank out of insolvency to keep to their accounts least 1.4 billion euros in customer deposits lie. But it is intertwined in the sales closely with the mother company. The authority, which is first acted late against Wirecard, in turn, is itself massively in the criticism. "In the case of the financial Supervisory heads must roll," said the Left-financial politicians Fabio de Masi: "The petition of Wirecard is a fiasco for Germany as a financial center."

Updated Date: 25 June 2020, 12:20

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