The German accounting supervisory body APAS banned EY from conducting new audits for entities of public interest for two years and fined it EUR 500,000. This was reported by the German economic daily Handelsblatt on Monday.
APAS refused to comment on the report. The regulator is expected to release a statement on its decision to sanction EY later on Monday.
EY has not yet responded to a request for comment.
Wirecard filed for insolvency in June 2020. It owes creditors nearly $4 billion (€3.68 billion) after a €1.9 billion hole in its accounting was revealed, which EY said was the result of a sophisticated global fraud .
Founded in 1999, the company initially processed payments for gambling and pornography websites before becoming a payment service provider between credit card companies on the one hand and retailers and other vendors on the other. At one time, it was also part of the DAX stock index.
Three former Wirecard executives, including ex-director Markus Braun, have been detained and charged on suspicion of fraud, falsification of accounting and market manipulation.
The missing money is still missing today. The company allegedly booked non-existent income, which it attributed to several partners in other countries. She used false documents to artificially inflate assets and make herself more attractive to investors and customers.
Many private investors thus lost large sums when Wirecard shares became worthless overnight.
APAS found massive breach of duty by EY in connection with the scandal, Handelsblatt said, citing sources familiar with the matter.
The announced ban concerns EY’s participation in tenders for audits of certain companies and covers all listed companies as well as most of the financial sector consisting of banks and insurance companies, Handelsblatt added.
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