Money News

Wirecard confirms key Middle East unit was audited by EY

BERLIN (Reuters) - German payments company Wirecard WDIG.DE said on Tuesday that a key Middle Eastern unit had been properly audited, addressing allegations that the subsidiary had been a conduit for money flows of uncertain provenance.

The unit, Card Systems, was not audited on an individual level but had been subject to a higher-level “full-scope” audit by its auditor EY that included site visits, CFO Alexander von Knoop told an investor presentation in New York.

The Financial Times, citing whistleblowers, alleged in April that the accounts of the Dubai-based unit, which it said accounted for the bulk of Wirecard’s revenues and profits, were not audited in 2016 and 2017.

Wirecard denied this at the time but faced renewed questions from its critics, including short sellers seeking to profit from falls in its share price, when a recent bond prospectus appeared to contradict its earlier statements.

Reporting by Douglas Busvine; Editing by Edward Taylor