EY’s Wirecard audits suffered serious shortcomings, German probe finds- FT

EY’s audits of defunct payments group Wirecard suffered from serious shortcomings over a period of years, a German investigation has found.

Financial Times reports that EY is said to have failed to spot fraud risk indicators, did not fully implement professional guidelines and, on key questions, relied on verbal assurances from executives.

A special investigator who scrutinised the EY audits came to a damning verdict about the quality of the work, according to people with first-hand knowledge of the report.

The report, filed to the Bundestag late this week, will significantly increase the woes of the accountancy firm. EY is already facing lawsuits from Wirecard shareholders and creditors. Legal action by Wirecard’s administrator is also likely to follow.

Financial Times