January 15, 2021

EY Partners Told How to EYsplain Wirecard Mess to Clients

ey orlando

The Financial Times reported on Monday:

EY has told its partners how to prepare for difficult conversations with clients about its audits of Wirecard, the German payments company that has filed for insolvency after admitting that €1.9bn of cash probably never existed.

In an internal note to senior partners on Friday, EY advised them to tell clients that the “objective” of the large international fraud at Wirecard was to “deceive investors and EY”.

It also provided partners with “summary talking points” about the scandal — the largest accounting fraud in German postwar history — and said they should contact Sajid Hussein, EY general counsel for Europe, or Jonathan Blackmore, head of risk management for the region, “to assist with client discussions”.

The Financial Times revealed last week that Wirecard’s auditors in EY’s German office failed for at least three years to request crucial account information from a Singapore bank where Wirecard claimed it had up to €1bn in cash, a routine audit procedure that could have uncovered the fraud.

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Related articles

Number of the Day: 43%

The Anti-Fraud Collaboration—a partnership between the Center for Audit Quality, Financial Executives International, The Institute of Internal Auditors, and the National Association of Corporate Directors—sifted through more than 530 SEC Accounting and Auditing Enforcement Releases (AAERs) filed between 2014 and 2019 for its newly released report, Mitigating the Risk of Common Fraud Schemes: Insights from […]