Posted: 1 year ago

EY Banned from Auditing in Germany for Two Years over Wirecard Scandal

Ernst & Young (EY), one of the world's leading auditing and consulting firms, has been banned from conducting audit activities in Germany for two years due to its involvement in the financial scandal of Wirecard, whose audit EY was responsible for.

The National Accounting Regulatory Commission also fined EY 500,000 euros for violating the rules of audit reporting and helping Wirecard cover up financial data, which ultimately harmed investors. The scandal involved a $2 billion "hole" in Wirecard's reporting, which led to its bankruptcy in 2020, owing $4 billion to creditors.

As the largest representative of the "big four" auditors, EY serves thousands of companies and organizations worldwide, employing around 365,000 people. This ban and fine will have significant implications for the company's operations and reputation.