Audit

The pandemic is introducing changes — potentially significant ones — to the SOX compliance process.

Wirecard AG’s former chief executive officer was detained by Munich prosecutors after 1.9 billion euros ($2.1 billion) went missing from the digital-payment company, in a scandal that has rattled Germany’s financial industry.

Wirecard AG was left fighting for survival after acknowledging that 1.9 billion euros ($2.1 billion) that it had reported as assets probably don’t exist, deepening an accounting scandal that has rattled Germany’s financial industry.

Markus Braun’s almost two decades as Wirecard AG’s chief executive officer ended after accusations about the company’s accounting culminated in a shock disclosure that it was unable to locate 1.9 billion euros ($2.1 billion).

Wirecard suffered one of the worst stock slumps in the history of Germany’s benchmark index after revealing that about 1.9 billion euros ($2.1 billion) in cash has gone missing, spooking investors who have endured years of allegations of wrongdoing at the payments company.

Real change will involve people, processes and much more beyond just software and hardware.

As companies contend with the economic impact of the global pandemic and the related risks, management should be prepared for heightened auditor scrutiny.

The firm admitted shortcomings in three years of work for a client, which had to restate its distributable reserves twice.

EY was sued over its work for the payment company, just two days after Wirecard’s headquarters were raided as part of a market manipulation probe.

As the coronavirus pandemic continues, the need for remote audit capabilities remains a prime concern.