Tuesday 28 April 2020 8:59 am

Wirecard says KPMG could not obtain all data for audit

Wirecard has said an independent audit by KPMG uncovered no need to restate earnings but added that all the data could not be obtained.

Wirecard hired KPMG last October to conduct an independent audit, in a bid to address claims its finance team had tried to inflate its reported sales and profits.

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In a statement the firm said not all data could be obtained “because the required data are primarily in the control of third parties.” Shares in Wirecard dropped 14.5 per cent in early trading.

The firm said no incriminating evidence for the allegations of balance sheet forgery had been identified. It added that with respect to all four areas of the audit, no significant findings have been made which would require an adjustment to the annual accounts between 2016 and 2018.

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The digital payments firm has been trying to rebuild its reputation after allegations about its accounting methods. Last year the Financial Times reported allegations of accounting fraud at the firm in several countries.

The company hired a law firm to investigate its Singaporean subsidiaries. A report in March acknowledged accounting oversights and criminal liability among some Singapore staff, but said it had found no evidence in Wirecard headquarters.

In a statement today, Wirecard said: “KPMG has identified documentation and organisational weaknesses during the audit period, which had already been identified by Wirecard.

Read more: Wirecard hires KPMG to inspect accounting, days after dismissing calls for independent audit

“Wirecard remedies these weaknesses since 2019 by establishing a Global Compliance Organisation and with the support of external consultants.”

The firm said it would not release its 2019 accounts on 30 April due to the coronavirus pandemic and the KPMG report.

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