The German Auditors regulator, APAS, had upgraded an investigation that had been ongoing since 2019, when the Financial Times first reported allegations of fraud at Wirecard, into a full formal regulatory inquiry.
Handelsblatt newspaper said the regulator was examining all audits that EY had conducted of Wirecard’s accounts since 2015.
“A preliminary inquiry was launched in October 2019,” the ministry said in a statement. “In May 2020, after KPMG’s report came out, that was turned into a full regulatory inquiry, which is still underway.”
EY said it was assisting the authorities with their investigations.
“We too are interested in this matter being cleared up comprehensively, completely and quickly,” the company said in a statement.
Munich-based Wirecard collapsed in June after EY refused to sign off on its 2019 accounts because it could not verify 1.9 billion euros ($2.2 billion) supposedly held abroad in escrow by third-party partners.
Former top Wirecard employees have already been arrested on suspicion of fraud and racketeering in Germany’s biggest accounting scandal.