Wirecard scandal sparks investor pressure for change in auditing market
In Investment Week, Mirabaud Securities’ head of TMT research, Neil Campling, and Sarasin and Partners’ head of stewardship, Natasha-Landell Mills, discuss challenges in the audit sector and the EY audit team’s mishandling of Wirecard.
Neil Campling stated that “the auditor is expected to maintain professional scepticism throughout the audit. EY did not raise issues in its 2018 audit despite the numerous red flags being waved by whistleblowers, journalists and events.”
Whilst Natasha stated that “the nature of the Wirecard fraud is precisely what shareholders expect auditors to be looking for, we expect them to be sceptical and digging into anything that raises red flags.”