Wirecard says KPMG could not review all data for audit

Wirecard hired the accounting firm in October. PHOTO: REUTERS

FRANKFURT (BLOOMBERG) - Wirecard AG said an independent audit by KPMG uncovered no need to restate earnings, but added that all the data needed to confirm past revenues could not be obtained.

Wirecard hired the accounting firm in October, which has been looking into the payment processor's third-party partner business, as well as business activities in India and Singapore.

In a statement on Tuesday (April 28), Wirecard said the required data needed to conclusively approve revenues from 2016-2018 is "primarily in the control of third parties." The company also added that its 2019 accounts will not be released on April 30, due to the Covid-19 virus and the KMPG report.

The company has drip-fed parts of the report to the market, including last week saying KPMG had not made any substantial findings of questionable accounting methods in all four areas of the audit.

The German company has been trying to rebuild its reputation after facing repeated allegations about its accounting methods. Wirecard's revenue soared in 2018 after it bought more than 15 companies in a few years. But in a series of articles, the Financial Times reported allegations of accounting fraud at Wirecard in several countries.

The company hired law firm Rajah & Tann to investigate its Singapore subsidiaries. A final report from the firm in March 2019 acknowledged accounting oversights and potential criminal liability among some Singapore staff, but didn't find evidence of any linked to Wirecard headquarters.

The Financial Times also reported that substantial sales and profits were processed by Wirecard's Dubai-based partner company Al Alam Solutions in the names of several clients that didn't exist or had no record of a relationship with the firm. The company "categorically rejects" the allegations, calling them "nonsense," a spokeswoman said in October.

Wirecard said the full KPMG report will be published "as soon as possible."

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