🇩🇪 Wirecard Fraud Explained! What went WRONG!
ฝัง
- เผยแพร่เมื่อ 14 มิ.ย. 2024
- Wirecard collapse was a failure by management, auditors and government. In this video we examine this unique case and likely effect on Ernst & Young in the aftermath.
Link to interesting video on Wirecard by FT reporter Dan McCrum:
• Wirecard and the missi...
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Netflix should give you your own finance fraud series.
🎬 I like it!
Yes, contact netflix, hope see you there
+1 for this
Count me in. I'd binge watch that
I landed a job at wirecard in June 2020. The day before I was supposed to hand over my resignation, they filed for insolvency. Thank God that was a near miss
Oh my goodness, yeah you got lucky there wow
… So were employees paid of for retrenchment … involuntary dismissal? …. That's the only benefit I see 🤔
I’m new to your channel and love your videos, especially your presentation and explanation skills. It would be great if you can do a video on basic forensic accounting for individual investors who are analysing stocks. This will be quite useful as most investors don’t trust the auditors anymore due to the recent frauds and scandals. Thank you for this video!
Thanks Himanshu! Will do a video on forensic accounting soon.
Excellent video. Thank you. As their external sales agent in Singapore building the merchant portfolio for them,, our investment of more than 5 years went up in smoke overnight when the Authority ordered them to stop providing merchant services in Singapore. Merchants were left scrambling. We lost everything. No compensation no support nor assistance. Big shame to put our trust on them.
Wow sorry to hear Benjy. Many investors suffered great losses from wirecard
Thanks for explaining something quite complex into much simpler terms...
You're welcome!
As always, well delivered content, thank you. As a German, I admit Bafin is a difficult word to pronounce: Bundesanstalt für Finanzdienstleistungen.
One question: where did this faux account with $2.1bn come from? As a result from of the round tipping or, in general, as the debit account for faux revenue JE? You have a guestimate on that?
Thanks Andre. Generally the round tripping results in a wash, over time. So my guess is the escrow accounts is the debit to the fictitious revenue booking from those overseas partners.
Federal what for Finance what in the which?
@@ellenorbjornsdottir1166 literally Federal Institute/Office for Financial Services, but they call themselves the Federal Financial Supervisory Authority in English.
I just found your channel and the content is great!
Thank you Melissa!
I'm having an interview for my placement year at University for a forensic analyst so I'm going to mention this case!
Thanks for your analysis.
Great effort to enlighten the common people.
👍
My pleasure
Thank you for the video. Good job. Will you do some topics about working in Big 4? Will you recommend to apply to work there?
Thanks ST. Yeah will do. A video on that. I highly recommend working for big 4 for a couple of years. My second option would be a couple of years at a smaller cpa firm.
@@TheFinancialController I have been researching on biggest scams like Enron etc.. and I see the big4 firms are there every where -- especially EY - Any particular reason? reputed firms are always in the spot.
@@time968 because they make more money in helping scam then what they make out of auditing
their auditors secretly provide financial advices for cash which will never be acknowledged in public or else people wont trust audit ever
if u do audit of big companies such high level scam can never go unobserved
as long as auditors get good money in their pockets and company is going to be going concern for next fy they don't care
Already a fan and I haven't watched the other videos as this is my 1st one. 👍🏾👍🏾
Thanks very much
Very well explained! Is there any new information on this case?
Will be making an update video soon
This was easy to understand....thanks so much.
Great thanks for watching
very interesting video thanks once again for this one
Glad you enjoyed it
Any books you recommend for forensic accounting ? I would really appreciate it thank tou
Hi. I recommend Financial Shinanigans by Howard Schilit. A great book on financial crimes and forensic accounting
The Financial Controller I read that one thank you do you have any more ? it’s a great book that’s why investing in companies with conservative accounting policies is a must for me. How was Wirecard able able to record fcf ? It’s insane fcf is the hardest to fake but they did it !
Andre Behroozi hey yeah that’s the only book I have on the subject. There are many others good ones on amazon. Wirecard recorded revenue and claimed they “earned it” under revenue recognition rules. Meaning they fulfilled performance obligations, have rights to cash/AR, etc. it was the auditors responsibility to catch the it. That’s why in many audits that I’ve seen the auditor wants to trace every revenue dollar recorded to cash receipts. I wish the auditor did that in this case
The Financial Controller wow thanks for the insights just subscribed you clearly have superior knowledge on the subject. You have a good point! aggressive revenue recognition policies can lead to fcf appearing on the CD statement when it should not. it would be awesome if you did a video on lunkin coffee.
Andre Behroozi thanks. Yeah check out my vid on Luckin, it’s on the channel. I will do a follow up on Luckin when more details come out
You do great work.
Thanks Emmett!
Hi can you look into Exela technology
You said the company is trying to find his way to continue but, realistically, which are the possible path to come back on track? Recapitalisation from government? Success in investigations, thus finding the lost money?
Parts of their business are actually quite lucrative, so I am hoping they can spin off or be bought
@@TheFinancialController so they are still doing business? I can’t find much related to this. Only about insolvency proceedings.
Are you allowed to state your opinion on Tesla’s audits since PwC is in charge of them?
why you left pwc to become a financial controller? was it worth it?
Great video. Isn’t true that these national big 4 firms are separate and distinct organizations from there counterpart firms in other countries? Therefore, if EY in Germany would be forced to break up, that would have little or no effect on EY in the US?
Thanks. That might be true, depending on the exact set up of the org chart. But I would suspect even if that's the case that the cultural impact of one locale break-up can lead to an org-wide split.
Interesting that your video didn't say anything on Marsalek
Do you think new rules will be put into place? I’ve been reading that some people want 2 different auditors to work on large clients. A big 4 auditor and a non big 4 auditor.
It’s an interesting idea. But not sure it’s practical. This could have been avoided if BaFin did their job and the auditor insisted on confirming bank balances independently
Hi I can yo in look into Exela technology
Why is your intro music louder than the video?
I think providing your opinion on where the money disappeared to would have been useful.
Not going to disagree here
So ... can you say that banks new this already in 2019?
Cannot say that for sure
Best part of video is board , must be you are artist in note making ..
Wirecard processed payments for CenturionBet back in 2017 which was laundering money for Ndrangeta...
Hmm good to know...thanks for watching
Why haven’t you mentioned Jan Marsalek? He was a key character
Sorry for the retail investors
Why is wire card still operating? Who is was the owner and who is the owner now? Did someone bought the company? I don’t get it.
Hi Susana, it'a public company so owned by stock holders. It's trying to recover, let's hope it can do that.
@@TheFinancialController thank you!!
will this stock recover??😰
Hard to tell. Sorry but just difficult to tell right now. It’s possible though
Subscribed
Welcome to the gang
Video actually starts at 3:07. You’re welcome
nothing will happen. If KMPG and Carillion didn't cause a change this certainly will not.
I read this as, "Sigmund Freud explained!" Wonder what that means.
EY kekw so corrupt.
Dislike because of ErnEst.
And I heart your comment 🧐
@@TheFinancialController Subscribed!
Haha thanks!
Government created Enron crisis. Then they to solve the problem with more government. 😂 This never works.
It worked remarkably well after the Wall Street crash of 1929 when regulations were introduced to avoid this happening again. Until the 1980s when deregulation removed the safety checks - and financial bubbles returned with alarming regularity