Auditor EY Replaces Germany Boss After Wirecard Scandal

Audit Group EY announced on Thursday that it will replace the head of its German office to move to “regaining trust” after the fraudulent collapse of wirecard.

Ernst & Young’s group said in a statement that EY German boss Hubert Bath, who had worked for five years, would stay at the company and be assigned a new role “at the European level.”

His replacement will be a leadership duo consisting of EY Germany’s senior management Henrik Ahlers and EY’s Vice Chairman of Global Guarantee Jean-Yves Jegourel.

EY, one of the world’s “Big Four” accounting firm giants, said the remodeling was part of a restructuring of its European operations. He added that the new leadership will focus on “further strengthening the quality and growth of the German office.”

But the move also happens after EY has faced intense criticism of its role in the downfall of the shameful German company Wirecard, which has been checking books since 2009.

“EY’s top priority is to help resolve the Wirecard case and restore lost trust,” said the group. “Working on measures and initiatives to increase confidence in (its) audit quality.” I’m out. “

EY is one of the giants of the world’s “Big Four” accounting firms

Wirecard, a once booming fintech sector star, digital payments company Wirecard broke down in June last year after EY refused to approve the 2019 report, bringing € 1.9 billion from accounts. Said it was missing.

Wirecard had to admit that the money didn’t exist and immediately filed for bankruptcy and sent a shock wave to Germany.

Since then, several Wirecard executives have faced fraud charges.

Fallout is widespread, with parliamentary investigations into possible political failures, an overhaul of the German financial supervisory agency Baffin, and a remodeling of the upper part.

As a Wirecard auditor, EY hasn’t escaped scrutiny for over a decade. Even though a series of media reports signaled a danger about Wirecard’s accounting practices, it approved the company’s account for years.

EY denied cheating and said he was the victim of “elaborate and sophisticated fraud,” but critics accused auditors of not thoroughly checking Wirecard’s books.

Wirecard investors have filed proceedings against EY Auditors in Germany and elsewhere.

The German audit watchdog APAS said EY may have failed to perform its duties properly and urged a Munich prosecutor to begin a preliminary investigation.

Auditor EY Replaces Germany Boss After Wirecard Scandal Source link Auditor EY Replaces Germany Boss After Wirecard Scandal

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