Wirecard widens scope of KPMG audit
7 Nov 2019
Wirecard has extended the scope of a KPMG independent audit as it seeks to end speculation it has manipulated its accounts, the German digital payments specialist has reported
7 Nov 2019
In its quarterly reporting update, the Wirecard said it ‘categorically rejected’ allegations made by the Financial Times which it described as ‘misleading claims and conclusions’.
The company said: ‘In order to fully and independently clarify the allegations, the management board and the supervisory board of Wirecard have decided to commission the audit firm KPMG to conduct an independent audit, in addition to the previously completed audit procedures and the audit results already made available about these issues.’
The scope of this extended audit will include allegations about third party acquiring businesses, particularly Al Alam, as well as certain allegations relating to its Merchant Cash Advance business.
KPMG is expected to conclude its work by the end of the first quarter of 2020. Wirecard said the firm was being given ‘unrestricted access to all relevant information at all levels of the group.’
The Financial Times allegations included claims that Wirecard sought to inflate reported sales and profits at its units in Ireland and Dubai.
Wirecard chief executive Markus Braun said: ‘We can totally confirm today that all of these allegations are unfounded.
‘But still, to give an additional service to the market and to bring down all these allegations, we decided to include here a second review by KPMG.’