Release from the obligation to secrecy by the insolvency administrator is insufficient.
From the point of view of the EY auditors, the requirements for a statement in the German Wirecard investigation committee have not yet been met. The release from the duty of confidentiality by the insolvency administrator Michael Jaffe is not enough, EY said on Monday and referred to the legal opinions of various courts.
A statement to the committee of inquiry that includes specific details about Wirecard and audit procedures therefore means a high personal legal risk for EY employees. The committee of inquiry had been asked to support a legally secure clarification of the situation and thus to bring about an effective release from the obligation of confidentiality.
EY's auditors had audited Wirecard's balance sheets for more than ten years before the company slipped into bankruptcy as a result of a billion-dollar accounting scandal. Last week, Jaffe released five named representatives of the auditors EY and KPMG from the obligation to maintain confidentiality.
EY sees itself confronted with a wave of damages claims in the scandal. In the event of a legally secure release from the duty of confidentiality, comprehensive statements are also possible in the investigation committee, the company said.
