The German authority that oversees auditors imposed sanctions on international accounting company EY for its shortcomings in auditing the books of bankrupt payments provider Wirecard.
The auditor oversight body, Apas, said it regarded EY as having been professionally negligent in providing its auditing services for Wirecard between 2016 and 2018.
The sanctions are being imposed on EY as a company and on five individual auditors. EY confirmed that it been informed that the Apas check was complete, but said it had not yet received the details.
Apas imposed a fine of €500,000 ($543,000) on EY. In addition, it is banned from providing auditing services to companies of public interest for two years. Apas said this measure referred to new clients and would not affect existing EY clients.
Individual auditors were hit with fines between €23,000 and €300,000. Appeals can be lodged once the notices have been completed.
Wirecard collapsed in the summer of 2020 after the executive board admitted that €1.9 billion allegedly booked in escrow accounts could not be found. Former Wirecard boss Markus Braun is currently on trial in Munich.
EY nevertheless passed the Wirecard accounts in the years in question.
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