EY gets banned from new audit business in Germany
economist.com
EY gets banned from new audit business in Germany
1–10 of 303 posts
Re: EY gets banned from new audit business in Germany
#2(for two years)
Re: EY gets banned from new audit business in Germany
#3Re: EY gets banned from new audit business in Germany
#4[flagged]
Re: EY gets banned from new audit business in Germany
#5If a CEO mismanages and goes bankrupt, they cannot start another company for 5 years; a two-year ban seems mild, but better than nothing, as the reputational damage is substantial (why would any non-criminal pick EY afterwards in good faith if there are others?).
Re: EY gets banned from new audit business in Germany
#6The wirecard scandal on Wikipedia: https://en.wikipedia.org/wiki/Wirecard_scandal
Re: EY gets banned from new audit business in Germany
#7Look, these sentences are probably more than just and even on the light sight. Handing in your auditing license is a pretty severe punishment, at least career changing. But will the risk and audit professionals at BaFin face the same penalties?
Re: EY gets banned from new audit business in Germany
#8Audits in general are such a joke. Rubber stamping and checks done by students or graduates who barely understand what they are doing. And even if they detect something, it is considered as not material and ignored.
From business perspective the auditors are clueless.
I dont claim that audits are bad, they are very needed. But the execution in many ways is so poor.
Re: EY gets banned from new audit business in Germany
#9If a CEO mismanages and goes bankrupt, they cannot start another company for 5 years; a two-year ban seems mild, but better than nothing, as the reputational damage is substantial (why would any non-criminal pick EY afterwards in good faith if there are others?).
As well as a €500K fine, five employees were also fined between €23,000 and €300,000. And seven others escaped punishment by handing back their auditor’s licences.
I’m not sure many reputable public companies will be queuing up to use their services in 2 years time
Re: EY gets banned from new audit business in Germany
#10Will be interesting to see if Everest moves ahead after this.