The audit failures of the wire card scandal: examining the role of the auditor in regulatory oversight

By:

Löw, Edgar

Contributor(s):

Heyd, Reinhard

Material type: Text

TextPublication details: Palgrave Macmillan Cham 2024Description: xvi, 173 pISBN:

9783031598531

Subject(s):

DDC classification:

657.45 LOW

Summary: Wirecard was the largest economic scandal in the history of Germany. Following the collapse of Wirecard, numerous lawsuits, both criminal and civil by equity and debt investors, were filed not only against Wirecard but also against the auditor Ernst & Young. This book demonstrates that a proper audit in accordance with the auditing standards would have uncovered the fraud much earlier, and details what went wrong. The book first deals with the fundamentals of auditing and examines the Wirecard business models from a legal and economic perspective. Then, the book deals with the fiduciary structure, which there has been often debated. When the fraud was uncovered, it became clear that 1.9 billion Euros that were supposed to be in escrow accounts were not. The book discusses the balance sheet mapping in detail, including the related audit requirements and examines in which balance sheet item the amounts (allegedly) in escrow accounts should have been reported, before examining and weighing the corresponding income statement items. In each chapter, not only are the accounting requirements presented, but the requirements for audit measures based on the respective Standards on Auditing are highlighted and explained in detail. The book places the requirements for reporting in the context of the Wirecard case, and will be of interest to accountants, auditors, market regulators, and credit risk analysts alongside students of accounting/auditing. (https://link.springer.com/book/10.1007/978-3-031-59854-8)

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Holdings
Item type	Current library	Collection	Call number	Copy number	Status	Date due	Barcode
Book	Indian Institute of Management LRC General Stacks	Finance & Accounting	657.45 LOW (Browse shelf(Opens below))	1	Available		008490

Table of contents:
Front Matter
Pages i-xvi
Download chapter PDF
Wirecard: Chronicle, Public Allegations, and the Downfall of the Company
Edgar Löw, Reinhard Heyd
Pages 1-21
Fundamental Principles of an Audit
Edgar Löw, Reinhard Heyd
Pages 23-38
Wirecard Business Model
Edgar Löw, Reinhard Heyd
Pages 39-60
Fiduciary Relationships
Edgar Löw, Reinhard Heyd
Pages 61-78
Trade Receivables versus Cash and Cash Equivalents
Edgar Löw, Reinhard Heyd
Pages 79-84
Sales Revenue and Commissions
Edgar Löw, Reinhard Heyd
Pages 85-98
Segment Reporting
Edgar Löw, Reinhard Heyd
Pages 99-107
Risk Reporting in the Notes to the Consolidated Financial Statements and Group Management Reports
Edgar Löw, Reinhard Heyd
Pages 109-137
Audit Opinion and Auditor’s Report
Edgar Löw, Reinhard Heyd
Pages 139-144
Concluding Remarks
Edgar Löw, Reinhard Heyd
Pages 145-155
Back Matter
Pages 157-173

[https://link.springer.com/book/10.1007/978-3-031-59854-8]

Wirecard was the largest economic scandal in the history of Germany. Following the collapse of Wirecard, numerous lawsuits, both criminal and civil by equity and debt investors, were filed not only against Wirecard but also against the auditor Ernst & Young. This book demonstrates that a proper audit in accordance with the auditing standards would have uncovered the fraud much earlier, and details what went wrong. The book first deals with the fundamentals of auditing and examines the Wirecard business models from a legal and economic perspective. Then, the book deals with the fiduciary structure, which there has been often debated. When the fraud was uncovered, it became clear that 1.9 billion Euros that were supposed to be in escrow accounts were not. The book discusses the balance sheet mapping in detail, including the related audit requirements and examines in which balance sheet item the amounts (allegedly) in escrow accounts should have been reported, before examining and weighing the corresponding income statement items. In each chapter, not only are the accounting requirements presented, but the requirements for audit measures based on the respective Standards on Auditing are highlighted and explained in detail. The book places the requirements for reporting in the context of the Wirecard case, and will be of interest to accountants, auditors, market regulators, and credit risk analysts alongside students of accounting/auditing.

(https://link.springer.com/book/10.1007/978-3-031-59854-8)

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