EY Under Fire for Wirecard Accounting

Accounting firm Ernst & Young failed to request bank statements from the Singapore bank that the fintech claimed to have up to €1bn in cash; Wirecard filed for insolvency last week, revealing that €1.9bn in cash probably did not exist; EY relied on documents and screenshots provided by a third-party trustee and Wirecard; “The big question for me is what on earth did EY do when they signed off the accounts?” said a senior banker at a lender with credit exposure to Wirecard according to the FT; EY had issued unqualified audits of Wirecard for a decade despite increasing questions over suspect accounting practices from journalists and short sellers; Akshay Naheta, a SoftBank executive who led an investment in Wirecard last year, attacked EY on Twitter according to the FT. “I’m totally baffled by the lack of competence and responsibility displayed by E&Y,” he wrote. “As an organisation that is meant to protect all stakeholders — creditors and shareholders — in companies, both public and private, they have materially failed in their fiduciary duties.” Financial Times.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

Sign up for our Newsletters

Every morning the Fintech Nexus News team scours the globe for the most important fintech stories of the day in the daily Global newsletter.

The Europe edition comes out on Monday, Wednesday, and Friday featuring the most important stories in European and UK fintech.

The Latin American newsletter arrives in your inbox on Tuesdays and Fridays. This is a trilingual newsletter featuring stories in Spanish, Portuguese, and English.

Join 20,000 subscribers!