Product details

This study explores the case of Wirecard AG, a German payment processor and financial service provider, which is in the midst of an accounting scandal that resulted from a cash misstatement (non-existence) to the tune of EUR1.9bn. Although the case is still under investigation and the CEO Markus Braun is on bail, there is a dire need to revisit the quality of financial reporting and reexamine the responsibilities of statutory auditors as well as regulators, and practical aspects of audit procedures. The main focus of this case is on how the credibility of financial statements can be compromised if the auditors are not performing adequate auditing procedures and using improper professional skepticism. Other areas can be discussed such as effective governance at the board level, and the role of regulators and credit rating agencies which is outside the scope of this case.