Fintech Company Wirecard Failed Audit: Stocks Fall

The share price of Wirecard AG, the largest German payment service provider, fell extremely by 66% on the Frankfurt Stock Exchange as the company announced a delay in issuing its annual financial report.

The delay was caused by the fact that one of the bank accounts of the company did not confirm the presence of 1.9 bln euros. The problem was confirmed by the audit company Ernst & Young. A Wirecard spokesman said the company’s bank account manager tried to trick the auditor by providing false data of a huge amount of money. As a result of the scandal, Wirecard's share price dropped by more than 50%.

At the moment, the company is investigating the situation in cooperation with the auditor. The missing amount is a quarter of the funds on the Wirecard balance. The company said that if the report was not published on Friday, June 19, some of the loans totaling 2 bln euros could be canceled.

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