Chapter 8: Deficiencies in the Audit of Wirecard: A Case Study of the Enron of Germany

EY's audit of German company Wirecard raises many questions about the quality of its audit. The scope and depth of the audit deficiencies have led some to call it: Germany's Enron. The authors review the facts of the case and raise broad-based questions that address EY's audit: what it did wrong, what other steps it might have taken to enhance the audit, and whether it can be characterized as a failed audit. The case provides learning objectives, implementation guidance, and answers to these questions. The authors believe that it can be used at both the undergraduate and graduate levels in courses dealing with accounting ethics, fraud in financial statements, and auditing.