Consequences of accounting fraud: The audit must re-align

in The case of Wirecard draws circles to the Invigilator. The reason for this is that the Federal judiciary and the Federal Ministry of Finance will terminate t

Consequences of accounting fraud: The audit must re-align

in The case of Wirecard draws circles to the Invigilator. The reason for this is that the Federal judiciary and the Federal Ministry of Finance will terminate the contract with the German financial reporting enforcement panel (DPR) – what a spokesman for the Justice Department on Sunday confirmed in Berlin – is the fact that the German Federal financial Supervisory authority Bafin in February 2019, the DPR had commissioned to take to the financial statements for the first half of 2018 by Wirecard closer under the magnifying glass. This test is not completed after 15 months still. The government can 30 to of the. June, the recognition agreement with organised under private law DPR 31. December 2021 terminate. Edgar Ernst, President of the DPR, is shown surprised by the decision of the policy.

Georg Giersberg

editor in the business, responsible for "The economist".

F. A. Z.

"With the us, no one has talked about it, not even now, after the publication in the media. I see us as pawns,“ said Edgar Ernst, President of the DPR. He refers to the high acceptance of its inspection authority in the economy. It was only following with a Person of the Review of the semi-annual report of Wirecard, because it corresponds to first of the procedure. Secondly, the Bafin had prohibited the so-called Short selling (short selling) against Wirecard and be taken against a negative newspaper reports, have hung even the case is rather low.

Spontaneously

not be equipped with 15 employees and an annual budget of 6 million euros for a forensic examination. You can't because the companies are working together on the principle of voluntariness with the DPR. Should refuse a joint-stock company, an audit by the balance sheet, the police agree, then the Federal financial Supervisory authority (Bafin) is active. Only the Bafin is entitled to coercive measures of a balance sheet audit to enforce.

the fact you can see that the monitoring system for the economic investigator serious flaws: the Supervisory authorities are to small to be in such an acute case, quick to respond, and you may usually take in relation to the Public no comments.

From the environment of the supervision is to hear that one can use for such cases, such as Wirecard, neither the DPR is examining the company's financial statements once the content of the Apas – the auditor oversight body in Eschborn, near Frankfurt, is examining the quality of the auditor company, – because they have to little staff. It would, therefore, Point to the criminal Act of a "Rapid response group" of auditors, which could spontaneously be put together.

consent buy?

The second Problem is that the secrecy is. "We have a system of public oversight, but are silenced to the Public", lamented in 2012, the then President of the AOC, the former President of the Federal court of Finance Wolfgang Spindler. The Apak, the predecessor organization of today's Apas was. The confidence in the work of the auditor will not be shaken only by the scandal as such, the Prosecutor's office had to clear up at the end.

Updated Date: 28 June 2020, 11:20

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