German

German regulator examines auditor EY over Wirecard accounts

FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany, July 22, 2020. REUTERS/Michael Dalder/File Photo

BERLIN (Reuters) – The German body in charge of regulating auditors is examining the work of EY, the auditor that approved the books of collapsed payment services firm Wirecard, the German Economy Ministry said on Monday.

The ministry said Auditors’ Regulator (Apas) had upgraded a preliminary investigation that had been running since October 2019, when the Financial Times first reported allegations of fraud at Wirecard, into a full formal regulatory inquiry.

The ministry gave no further details.

Handelsblatt newspaper, which first reported that the inquiry was underway, said the regulator was examining all audits that EY had conducted of Wirecard’s accounts since 2015. The regulator has the power to check earlier submitted accounts and audits.

“A preliminary

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German regulator to examine auditor EY over Wirecard accounts: Handelsblatt

FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany, July 22, 2020. REUTERS/Michael Dalder/File Photo

BERLIN (Reuters) – The German body in charge of regulating auditors is examining EY in connection with their involvement with collapsed payment services firm Wirecard, Handelsblatt newspaper reported on Monday, citing a confidential Economy Ministry document.

The document said that the Auditors’ Regulator (Apas) was examining all audits that EY had conducted of Wirecard’s accounts since 2015. The regulator, which according to the document first began looking at the matter in October 2019, has the power to check earlier submitted accounts and audits.

“A formal professional oversight examination is underway into the Ernst & Young Audit Company,” the document said, adding that the review would examine “adherence to legal and professional stadards.”

EY was not immediately able

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German lawmakers grill Scholz, Altmaier over Wirecard scandal

BERLIN (Reuters) – German lawmakers on Wednesday questioned Finance Minister Olaf Scholz and Economy Minister Peter Altmaier over their failure to detect and prevent the Wirecard [WDIG.DE] accounting scandal, one of the biggest in post-war history.

Finance Minister Olaf Scholz attends the German parliament’s financial committee to report about the Wirecard case in Berlin, Germany, July 29, 2020. REUTERS/Axel Schmidt

Payment services company Wirecard filed for insolvency last month after admitting that 1.9 billion euros ($2.2 billion) supposedly held in trustee accounts by overseas partners probably did not exist.

Prosecutors have arrested former Wirecard Chief Executive Markus Braun and two other former executives on suspicion of orchestrating a years-long criminal racket to inflate revenue and balances to hide losses dating back at least to 2015.

In a closed-door meeting of parliament’s finance committee, Scholz answered questions for over four hours, sticking to his general line of defence that no mistakes

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German lawmakers grill Scholz over Wirecard scandal

FILE PHOTO: German Finance Minister and Vice-Chancellor Olaf Scholz attends a news conference on the coronavirus disease (COVID-19) in Berlin, Germany, April 8, 2020. REUTERS/Michele Tantussi/File Photo

BERLIN (Reuters) – German lawmakers on Wednesday questioned Finance Minister Olaf Scholz over his failure to detect and prevent the Wirecard [WDIG.DE] accounting scandal, one of the biggest in post-war history.

Payment services company Wirecard filed for insolvency last month after admitting that 1.9 billion euros ($2.2 billion) supposedly held in trustee accounts by overseas partners probably did not exist.

Prosecutors have arrested former Wirecard Chief Executive Markus Braun and two other former executives on suspicion of orchestrating a years-long criminal racket to inflate revenue and balances to hide losses dating back at least to 2015.

Scholz entered the closed-door meeting in the parliament’s finance committee without giving a statement to reporters, but he earlier told public broadcaster ARD that no mistakes had

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