EY gets banned from new audit business in Germany

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The penalty is a financial blow to the accountancy firm—and an even bigger reputational one

’s decision comes after a three-year investigation into’s role in the demise of Wirecard, a fintech darling turned Germany’s biggest post-war corporate scandal.had given Wirecard a clean bill of health for a decade until the company collapsed in 2020 amid allegations of massive financial fraud.violated its duty of care during the audit of Wirecard and Wirecard Bank. Five current and former employees were also fined between €23,000 and €300,000.

Regulators, for their part, think audits could be improved. They have tried to increase competition. For instance, in Europe firms must rotate their auditors, typically after ten years. Yet despite such efforts, audit remains a cosy oligopoly. The so-called “big four”—Deloitte,

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Scheiße

Hugolopea

There is always a grey area in auditing business. Auditors are hired by businesses to provide assurance on financials. And businesses don’t want problems detected. Conflicts of interests.

Should be banned from Sponsoring Industry Awards across Countries too.

Didn't Arthur Anderson have to disappear after Enron corruption ? Why is this failure any different ? No lessons learned. FT premnsikka davidmcw

PeruIsADictatorShip pcmperu and AlbertoOtarolaP to Keiko Fujimori: Yes, madamme. Far-right party Fuerza Popular sent orders to peruvian ministries to stay in silence.

Why only Germany? It was a very international fraud.

💊🍀 🥛

Congratulations! You made it!

Always talk of Regulatory Capture- why not Audit Capture?

Couldn’t happen to a nicer nest of nepotism

I've said it before and I'll say it again. Auditors should be appointed in the same way as liquidators in order to achieve real independance. Scandals will continue until appointments are not made by management.

Audit function must be nationalised as it must be a government regulation body otherwise it is the same old farce. The profession's self-regulation has failed miserably. premnsikka

Choices are either break-up the cartel or make the penalties for failure so severe that they will invest in maintaining higher audit quality. Unfortunately the penalties that are presently issued do not do what they should be doing.

PwC on americanas arent a problem yet?

About time this cartel was broken up.

about time!

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