Wirecard scandal sparks investor pressure for change in auditing market

EY under fire for role in auditing firm before collapse

Claims that compensation is owed to investors by Big Four auditor EY as a result of its handling of the Wirecard scandal have reignited concerns about how far investors can trust auditing work completed on investee companies, and has renewed calls for change in market practices.

EY has faced fierce criticism for its role as auditor of Wirecard, which has now filed for insolvency after it emerged that €1.9bn of cash on its balance sheet was unaccounted for, with particular scrutiny of EY Germany's failure to request information from a Singapore bank, allowing a €1bn fraud to go undetected. Investor group European Investors - VEB now claims EY owes investors compensation having "not properly fulfilled its role" and "not assumed the full width of its responsibilities" as auditor. Encouraging other investors to join its legal action, the group said EY not only "p...