Secret Wirecard Paper Revealed: EY Omitted A Number of Warning Signs

A secret Wirecard paper has been revealed
EY missed a number of warning signs

Indeed, the commission of inquiry was supposed to shed light on the Wirecard case. But of all things, Wambach’s auditor’s report on EY’s work has so far been withheld from the public. 168 pages can now be viewed.

And “Handelsblatt” published the text of the special report on the work of the audit firm “EY” in Wirecard, which is classified as confidential. The team surrounding Martin Wambach acquires EY. According to the report, which deals with the largest economic scandal in the history of the Federal Republic of Germany, auditors who have reviewed Wirecard’s budgets since 2009 have missed many warning signals.

Accordingly, the private investigators’ analysis also suggests that: If EY had consistently audited against the standards of the Institute of Auditors (IDW), the business behavior may have been detected too soon. Auditors found a “significant accounting deficit” as early as 2015, that was to be assessed as “indicators of fraud” and “an auditor could have identified it as such.”

The 168-page “Wampac Report” According to “Handelsblatt,” statements such as: “EY has not characterized any discussion or validation of the plausibility of these distortions.” In the EY documents, neither the “necessary critical position” nor the “higher risk assessment of the auditor” resulting from the particular position is recognized.

Specifically, the classified file states, for example, that EY relied on the particularly critical acquisition of Indian Hermes Group “primarily on oral and written data from suspect persons” and on a failed purchase agreement with the Al-Alam Group from Dubai. Apparently in the note that the contract contained the name of another company six times instead of the world company.

EY doesn’t want to know any of this and refuses to claim misconduct. “In accordance with IDW audit standards, a retrospective evaluation does not allow for any conclusions to be drawn about auditor misconduct,” says a Handelsblatt spokesperson. In addition, investigators were only able to look at individual aspects of EY’s audit activities during their work. EY auditors acted “according to their knowledge and beliefs”.

The Munich Prosecutor’s Office is currently investigating two EY investigators on suspicion of providing assistance, despite all attempts at relativism. In addition, the supervisory authority APAS has launched an investigation that employees may lose their license. However, at the moment it is not yet clear if this was the case, and if so, to what extent EY could be responsible for the massive damage that has been done. Because Wirecard shares, which have reached record levels of nearly 200 euros, are now worth only a few cents and are a pawn for speculators.

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