Dhe insolvency of the previous DAX firm Wirecard just isn’t solely in all probability the largest accounting scandal in Germany. The case additionally led to knowledgeable supervisory process of unprecedented scope against the auditing firm EY, which is chargeable for Wirecard. The work of the auditor supervisory authority APAS is considerably influenced by the Wirecard case, because the authority writes in its report for the yr 2021. “The processing of this case nonetheless ties up appreciable sources within the skilled supervision and within the departments,” says the doc printed on Monday. “The actions of the skilled supervisory authority APAS have been considerably influenced by the Wirecard case,” writes APAS supervisor Michael Promote within the foreword of the annual report.
Promote, who’s a lawyer and tax guide, solely took over the administration of APAS in September 2021. So on the time when she needed to take care of her in all probability most vital and largest process with the Wirecard case. The restructuring of the auditor supervision can be a consequence of the Wirecard affair.
Extremely complicated course of
In line with Promote, the investigations within the case are extremely complicated as a result of there are quite a few victims and completely different allegations against them. The process can be complicated as a result of these affected are represented by completely different specialists and use their proper to intensive inspection of information. This considerations the skilled regulation examination of the audit of the annual and consolidated monetary statements for the Wirecard monetary years 2015 to 2018, together with the Wirecard Financial institution.
The supervisory authority APAS evaluated the intensive working papers ready by the auditors chargeable for Wirecard and likewise granted the individuals affected by their investigation a authorized listening to, some of which was repeated. With their working papers, auditors doc, for instance, how they carried out the audit of an organization and what proof they obtained for this. The working papers are due to this fact the topic of supervisory investigations after they come up, as within the Wirecard case.
Along with the working papers, APAS has requested further paperwork and knowledge, together with intensive e-mail site visitors from the auditors. Not all of the statements and paperwork can be found so far. The company now expects to obtain the ultimate excellent feedback by the top of the second quarter. Earlier than the top of this yr, the APAS needs to resolve whether or not the auditors chargeable for Wirecard have violated their skilled duties and whether or not sanctions needs to be imposed on them. These sanctions might be very far-reaching. In line with the regulation, bans on actions and professions lasting a number of years are doable not just for particular person auditors however even for whole auditing corporations.
Tons of work for the inspectors
Along with the Wirecard case, the auditor supervision APAS is processing quite a few different instances. At 119 instances, the quantity of newly initiated proceedings in 2021 was considerably greater than within the earlier yr with 83 instances. Because hardly any extra instances could possibly be closed than within the earlier yr because of the excessive workload and scarce sources, the quantity of open procedures rose considerably from 259 to 309. The rise additionally has to do with complicated procedures such because the very complicated Wirecard case.
Regardless of the excessive workload, the statute of limitations for open instances has to date been prevented in accordance with the APAS. Nonetheless, the authority warns that attributable to scarce sources, new instances are being added sooner than outdated ones might be processed. There have been workers departures within the skilled supervision, and the recruitment of new staff has not but been accomplished.
