EY banned from auditing public interest companies in Germany over Wirecard | CNN Business

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Big-4 accounting firm EY has been banned from auditing companies of public interest in Germany for two years over its failures as the auditor of Wirecard in the years before the digital payments company’s staggering collapse

. Germany’s auditor supervisory authority APAS said Monday that it had imposed sanctions on the auditor of Wirecard over “breaches of professional duty” between 2016 and 2018, without naming EY. EY had audited Wirecard for more than a decade before refusing to sign off on its final results for 2019, precipitating the company’s downfall. The supervisory body also fined the Wirecard auditor €500,000 and issued smaller fines — between €23,000 and €300,000 — to five individual auditors at the firm.

Germany’s Wirecard filed for insolvency in 2020 following the discovery of a $2 billion accounting fraud that regulators, the company’s supervisory board and its longtime auditor failed to spot. Investors rely on auditors for assurance that a company’s accounts provide a true reflection of its earnings.

 

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