EY Hits Back at German Audit Watchdog Over Alleged Misconduct

EY has lashed out at Germany’s audit watchdog for prematurely reporting suspected criminal misconduct by its partners to prosecutors in an escalating battle over the Big Four firm’s audit work at defunct payments company Wirecard, the Financial Times reported in a commentary. Wirecard collapsed into insolvency in June in one of Europe’s biggest postwar accounting frauds after receiving “all clear” audits by EY for more than a decade. Apas, the German audit watchdog, told criminal prosecutors in late September that three current and former EY partners may have acted criminally. It suspected that EY partners were aware of issuing a “factually inaccurate” audit for Wirecard in 2017. On Thursday, EY accused Apas of rushing to conclusions. Read more