EY’s Wirecard Audits Faulted by German Parliament Investigator

A special parliamentary investigator lists far-reaching shortcomings in Ernst & Young’s audits of Wirecard AG before the German financial technology company collapsed last year, a person familiar with the report said.

The investigator lists about 11 incidences where EY failed to take measures to uncover the multibillion fraud, said the person, who spoke on the condition of anonymity because the report is classified as secret. It concludes the quality of the documents presented to EY were not very reliable as they came from the company’s verbal or written statements and not from neutral third parties such as the banks, the ...