By Mark Maurer Close Mark Maurer July 8, 2020 11:59 am ET , a challenge highlighted in the recent accounting scandal surrounding German electronic-payments company Wirecard AG .
The Wirecard scandal has put a spotlight on the effectiveness of company audits. Wirecard on June 18 said its auditor, Ernst & Young, couldn’t confirm the existence of $2 billion meant to be stored in trust accounts. Four days later, the company said the cash probably didn’t exist. Since then, the company has filed for insolvency proceedings, its chief executive has left, and Germany announced changes to its accounting oversight regulations.
Very few fintech companies have come under accounting probes. The U.S. Securities and Exchange Commission in 2011 charged Chinese financial-software company Longtop Financial Technologies Ltd. with failing to file current and accurate financial reports. The SEC revoked the registration of the company’s stock, and the former chief financial officer in 2015 agreed to a $2.3 million settlement in a class-action investor lawsuit.
The different types of transactions within a fintech company could require a more complex application of accounting principles, Mr. Cullinan said.
NEED PRESCRIBED STANDARDS TO PREPARE, PRESENT FINANCIAL STATEMENTS FOR AUDIT. ACCOUNTS SHOULD DISPLAY CORRECT FACTS BASED ON EVIDENCE ONLY. PROBLEMS STARTS WITH TRYING TO REPLACE ESTIMATED VALUES TO COSTS,APPROPRIATIONS TO ACTUAL, ASSUMPTIONS TO FACTS. ACCOUNTS SHOULD BE ACTUAL.
They could always call a financial institution to check on their cash balance. Guess that is hard to do.
Auditors need more Education
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. DoJ examining Wirecard as part of probe into alleged bank-fraud conspiracy: WSJThe U.S. Justice Department is examining whether German payment company Wirecard AG played a critical role in an alleged $100 million bank-fraud conspiracy connected to an online marijuana marketplace, the Wall Street Journal reported on Wednesday. The reasons why Chinese eat bats and everything.. I'm getting punchy this afternoon. For a moment I tho't DoJ was examining 'Winecard'.
Source: Reuters - 🏆 2. / 97 Read more »
WSJ News Exclusive | Wirecard Under Criminal Scrutiny by U.S. Authorities as Part of Probe Into Alleged Bank-Fraud ConspiracyThe Justice Department is examining whether scandal-plagued German payment company Wirecard played a critical role in an alleged $100 million bank-fraud conspiracy connected to an online marijuana marketplace, according to people familiar with the investigation. bullshit. give marijuana businesses direct access to bank accounts and they won't need to jump through ridiculous hoops to pay employees, taxes, etc.
Source: WSJ - 🏆 98. / 63 Read more »
U.S. DoJ examining Wirecard as part of probe into alleged bank-fraud conspiracy: WSJThe U.S. Justice Department is examining whether German payment company Wirecard AG played a critical role in an alleged $100 million bank-fraud conspiracy connected to an online marijuana marketplace, the Wall Street Journal reported on Wednesday. The reasons why Chinese eat bats and everything.. I'm getting punchy this afternoon. For a moment I tho't DoJ was examining 'Winecard'.
Source: Reuters - 🏆 2. / 97 Read more »
Wirecard administrator sees strong interest from potential buyersThe administrator of collapsed German payments firm Wirecard said on Tuesday that more than 100 investors have expressed interest in buying the company's core business and its holdings. $QLGN Make that consensus your propogandist machine
Source: Reuters - 🏆 2. / 97 Read more »
Internal Audit Slams Facebook’s ‘Inadequate’ Civil Rights Approach As Companies BoycottThe two-year audit found Facebook’s recent decisions have resulted in “serious setbacks for civil rights.” Time to quit Facebook Comical, who says what is right or wrong? Its just political nonsense based on who's opinion. I'm glad to see Facebook not get involved with that type of B.S. I'm boycotting them.
Source: Forbes - 🏆 394. / 53 Read more »
Facebook civil rights audit warns of Trump, voter suppression ahead of presidential electionA new report by civil rights auditors warns that Facebook’s failure to rein in toxic speech, racism and misinformation could have serious repercussions on the presidential election and may even suppress voter turnout. All lives matter rodimusprime That's actually the whole point.
Source: USATODAY - 🏆 100. / 63 Read more »