Audit delay: Wirecard defends accounting

BERLIN • Wirecard said it followed all reporting obligations properly, rejecting a news report on a delay to an audit of the German company's accounts in Singapore from 2017.

Ernst & Young could not form a "final audit opinion" on the Singapore operations based on local accounting standards because the firm could not access all documents due to restrictions from an ongoing investigation in the Asian country, Wirecard said in a statement yesterday.

The shares fell about 10 per cent in pre-market trading.

The delay was not due to irregularities, "as mistakenly suggested in the article", Wirecard said. "The local financial statements were duly audited within this scope." Ernst & Young in Germany declined to comment.

Wirecard's shares have whipsawed this year after several media reports raised questions about accounting methods, all of which the company has rejected.

The digital payments company is bolstering best practices by ramping up the number of employees in compliance by about 50 per cent, and by splitting its legal and compliance departments.

Ernst & Young cannot determine the adequacy, completeness and accuracy of the financial statements of Wirecard Singapore unit, German daily Handelsblatt reported late Tuesday.

Wirecard said the restrictions were not relevant for the audits of the consolidated financial statements in accordance with global accounting standards, adding that its annual reports for 2017 and last year are not affected.

"All reporting obligations have been followed properly, including the auditor's opinion on the local standalone financial statements 2017," which has been filed with the authorities in Singapore, Wirecard said.

"The reporting of the standalone financial statements for the financial year 2018 is close to completion."

BLOOMBERG, REUTERS

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on November 21, 2019, with the headline Audit delay: Wirecard defends accounting. Subscribe