EY auditor firm has been fined €500,000 by the German regulator for the lawsuit of Wirecard AG, a financial company it has overseen for over 10 years, which went bankrupt in 2020. In this respect informs Bloomberg agency.
In addition, the regulator has imposed a two-year ban on the German division of public interest EY audit firms. The publication noted that the ban does not apply to existing EY audit engagements.
According to the agency, Wirecard filed for bankruptcy in June 2020 as the audit firm failed to verify the existence of €1.9 billion in the accounts.
In the statement made by the German accounting auditing institution APAS, it was reported that the company’s auditor violated its obligations to verify the reports during the years of the Wirecard audit. Although EY is not directly listed in the text, it was this company that oversaw Wirecard.
In mid-January, Kommersant newspaper, citing industry analysts, WroteThat auditors in the Russian market could lose 0.7 billion rubles. up to 1.2 billion rubles. as a result of the removal of the use of international financial reporting standards (IFRS). If the authorities approve the relevant bill, the big companies will suffer the real damage.