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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Neil Hodge2023-10-26T13:09:00
The Wirecard fraud highlights what happens when regulators and auditors fail to act properly and underlines the importance of encouraging and protecting whistleblowers, said the reporter who exposed the firm.
Speaking at Compliance Week’s Europe conference in London, Dan McCrum, an investigative journalist with the Financial Times, said one of the principal reasons why Wirecard’s fraud went undetected for so long was because no one sought to challenge such a “successful” company, even when its accounts and business model didn’t make sense.
“Wirecard was very profitable and was growing quickly. It was a ‘sexy’ company that looked as if it was going to be the next big thing in a sector that generated excitement,” McCrum said. “It became obvious that investors, regulators, and auditors didn’t ask too many questions because it was the kind of company they all wanted to attract, despite repeated warnings over several years it was impossible to tell how the company actually made its money.”
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News and analysis for the well-informed compliance or audit exec.
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2024-04-29T11:39:00Z By Neil Hodge
The European Union’s strong stance on whistleblower protection has been undermined by member states’ wildly different approaches to punishing organizations that fail to safeguard people who raise concerns, says Wirecard whistleblower Pav Gill.
2023-11-28T17:00:00Z By Aly McDevitt
In this episode of the Digital Transformation of Compliance podcast series, Kyle Welch, a George Washington University associate professor of accountancy, discusses findings from his research on internal whistleblowing and compliance dashboards built by publicly traded U.S. companies to leverage hotline data.
2023-04-03T16:46:00Z By Kyle Brasseur
Big Four audit firm EY will be prohibited from taking on new public interest clients in Germany for two years following an investigation into its work at collapsed payment processor Wirecard.
2024-07-24T17:54:00Z By Neil Hodge
A lack of risk visibility is causing companies to reject customers–and potentially lose money–over fears they might be in danger of violating rules around anti-money laundering and sanctions regulations.
2024-07-15T16:45:00Z By Jeff Dale
The Treasury Department’s Financial Crimes Enforcement Network updated an alert first issued in February warning financial institutions of Israeli extremists fomenting violence in the West Bank.
2024-06-28T19:30:00Z By Jeff Dale
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
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