{"id":92014,"date":"2020-10-18T17:48:00","date_gmt":"2020-10-18T14:48:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/these-imploding-scandal-plagued-companies-shared-a-big-four-auditor\/"},"modified":"2020-10-18T17:48:00","modified_gmt":"2020-10-18T14:48:00","slug":"these-imploding-scandal-plagued-companies-shared-a-big-four-auditor","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/these-imploding-scandal-plagued-companies-shared-a-big-four-auditor\/","title":{"rendered":"#\n  These imploding, scandal-plagued companies shared a Big Four auditor"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2943a083138\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2943a083138\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/these-imploding-scandal-plagued-companies-shared-a-big-four-auditor\/#Regulators_are_scrutinizing_whether_the_accounting_giant_Ernst_Young_%E2%80%94_now_widely_known_as_EY_%E2%80%94_missed_red_flags_or_failed_to_pursue_them\" >Regulators are scrutinizing whether the accounting giant Ernst &amp; Young \u2014 now widely known as EY \u2014 missed red flags or failed to pursue them<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/these-imploding-scandal-plagued-companies-shared-a-big-four-auditor\/#Wirecard_headquartered_in_Aschheim_near_Munich_this_fall_faced_a_parliamentary_inquiry_into_the_collapse_of_payments_provider\" >Wirecard, headquartered in Aschheim near Munich, this fall faced a parliamentary inquiry into the collapse of payments provider.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/these-imploding-scandal-plagued-companies-shared-a-big-four-auditor\/#By_Patricia_Kowsmann_and\" >By\u00a0Patricia Kowsmann and<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/these-imploding-scandal-plagued-companies-shared-a-big-four-auditor\/#Mark_Maurer_Jing_Yang\" >Mark Maurer\u00a0Jing Yang<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  These imploding, scandal-plagued companies shared a Big Four auditor<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Regulators_are_scrutinizing_whether_the_accounting_giant_Ernst_Young_%E2%80%94_now_widely_known_as_EY_%E2%80%94_missed_red_flags_or_failed_to_pursue_them\"><\/span>\n  Regulators are scrutinizing whether the accounting giant Ernst &amp; Young \u2014 now widely known as EY \u2014 missed red flags or failed to pursue them<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000037346\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:58.28124999999999%;\" data-mobile-ratio=\"58.28124999999999%\" data-layout-ratio=\"58.28124999999999%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-246381?width=140&amp;size=1.7158176943699732 140w,\nhttps:\/\/images.mktw.net\/im-246381?width=540&amp;size=1.7158176943699732 540w,\nhttps:\/\/images.mktw.net\/im-246381?width=620&amp;size=1.7158176943699732 620w,\nhttps:\/\/images.mktw.net\/im-246381?width=700&amp;size=1.7158176943699732 700w,\nhttps:\/\/images.mktw.net\/im-246381?width=860&amp;size=1.7158176943699732 860w,\nhttps:\/\/images.mktw.net\/im-246381?width=1260&amp;size=1.7158176943699732 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-246381?width=620&amp;size=1.7158176943699732\" data-enlarge=\"https:\/\/images.mktw.net\/im-246381?width=1260&amp;size=1.7158176943699732\" alt=\"\" title=\"Wirecard, headquartered in Aschheim near Munich, this fall faced a parliamentary inquiry into the collapse...\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Wirecard_headquartered_in_Aschheim_near_Munich_this_fall_faced_a_parliamentary_inquiry_into_the_collapse_of_payments_provider\"><\/span>Wirecard, headquartered in Aschheim near Munich, this fall faced a parliamentary inquiry into the collapse of payments provider.<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Christof Stache\/Agence France-Presse\/Getty Images<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       This year, $2 billion is missing at a German fintech company, $300 million of sales has been found to be fabricated at a Chinese coffee chain and $5 billion in undisclosed debt has been uncovered at two related companies listed in the U.K. Together, the incidents cost shareholders of the companies roughly $30 billion.<\/p>\n<div class=\"paywall\">\n       All had been audited by Ernst &amp; Young. Last year, EY also audited office-space company WeWork, which nearly collapsed after fumbling a planned initial public offering.<\/p>\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetPullQuote\n          wrap\n    scope-web|mobileapps\n  article__inset\n        article__inset--type-InsetPullQuote\n          article__inset--wrap\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span><br \/>\n         \u2018We take all issues extremely seriously.\u2019<br \/>\n        <span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span>\n      <\/p>\n<p>        <small><br \/>\n          <span class=\"inset-author article__inset__pullquote__author\">\u2014  Andy Baldwin , EY<\/span><br \/>\n        <\/small><\/p><\/div>\n<\/p><\/div>\n<p>       EY is one of the Big Four accounting firms, whose audits are meant to give investors confidence in companies\u2019 figures. EY missed red flags or failed to aggressively pursue them at some of the companies ahead of their scandals, and for the most part it was outsiders who raised questions first, a review based on publicly available documents and interviews with people close to the events shows. Now, regulators are scrutinizing EY\u2019s work.<\/p>\n<p> The EY audit clients that faced financial issues were German payments processor\u00a0Wirecard\u00a0AG\u00a0<br \/>\n        WDI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202757021\/delayed\" class=\"positive\">+23.31%<\/bg-quote><\/p>\n<p>        WCAGY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208618968\/delayed\" class=\"positive\">+16.75%<\/bg-quote><br \/>\n      ; China\u2019s\u00a0Luckin Coffee\u00a0Inc.\u00a0<br \/>\n        LKNCY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/212253358\/composite\" class=\"positive\">+3.62%<\/bg-quote><br \/>\n      ; hospital operator\u00a0NMC Health PLC<br \/>\n        NMHLY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/201584526\/delayed\" class=\"positive\">+2.33%<\/bg-quote><br \/>\n      ; and NMC sister company Finablr PLC , which owned the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">Travel<\/a>ex currency service.<\/p>\n<p><strong>See:<\/strong>  German parliament launches inquiry into fraud scandal at Wirecard, with government in crosshairs <\/p>\n<p>EY says it stands by its work and has high global audit standards. The firm says it played key roles in uncovering fraud at two of the companies, and it says China\u2019s regulator has found it to be prudent and independent.<\/p>\n<p><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/string-of-firms-that-imploded-have-something-in-common-ernst-young-audited-them-11602863319?mod=mktw\" class=\"icon none\">An expanded version of this report appears at WSJ.com.<\/a><\/p>\n<p><strong>Trending at WSJ.com:<\/strong><\/p>\n<p><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/treasury-department-encouraged-banks-to-prioritize-existing-customers-for-ppp-loans-democratic-report-says-11602861336?mod=mktw\" class=\"icon none\">Treasury Department encouraged banks to prioritize existing customers for PPP loans, House panel says<\/a><\/p>\n<p><a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/china-warns-u-s-it-may-detain-americans-in-response-to-prosecutions-of-chinese-scholars-11602960959?mod=mktw\" class=\"icon none\">China warns U.S. it may detain Americans in response to prosecutions of Chinese scholars <\/a><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"By\u00a0Patricia Kowsmann\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"By_Patricia_Kowsmann_and\"><\/span>By\u00a0Patricia Kowsmann and<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Mark Maurer\u00a0Jing Yang\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Mark_Maurer_Jing_Yang\"><\/span>Mark Maurer\u00a0Jing Yang<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-D91E2F8053E6%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# These imploding, scandal-plagued companies shared a Big Four auditor &#8221; Regulators are scrutinizing whether the accounting giant Ernst &amp; Young \u2014 now widely known as EY \u2014 missed red flags or failed to pursue them Wirecard, headquartered in Aschheim near Munich, this fall faced a parliamentary inquiry into the collapse of payments provider. Christof&#8230;<\/p>\n","protected":false},"author":1,"featured_media":92015,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-92014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=92014"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/92014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/92015"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=92014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=92014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=92014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}