EY Ignored Its Own Investigator’s Warnings of Wirecard Fraud

Ernst and Young’s German office was warned about possible wrongdoings at Wirecard AG before approving the company’s accounts, the firm’s analyst said at a German parliamentary hearing on Thursday.

Christian Muth, head of EY’s forensic team in Germany, told the parliament’s Wirecard investigation committee that he had looked into whistleblowers’ charges about irregularities in Wirecard’s India business.

There were “hints” that things were “glowing” in India, as well as indications of forgery, Muth said. He sent “angry messages” to colleagues in EY Germany pointing out red flags, he said.

• A whistleblower had told EY about possible management involvement in ...