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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Neil Hodge2023-10-26T13:09:00
The Wirecard fraud highlights what happens when regulators and auditors fail to act properly and underlines the importance of encouraging and protecting whistleblowers, said the reporter who exposed the firm.
Speaking at Compliance Week’s Europe conference in London, Dan McCrum, an investigative journalist with the Financial Times, said one of the principal reasons why Wirecard’s fraud went undetected for so long was because no one sought to challenge such a “successful” company, even when its accounts and business model didn’t make sense.
“Wirecard was very profitable and was growing quickly. It was a ‘sexy’ company that looked as if it was going to be the next big thing in a sector that generated excitement,” McCrum said. “It became obvious that investors, regulators, and auditors didn’t ask too many questions because it was the kind of company they all wanted to attract, despite repeated warnings over several years it was impossible to tell how the company actually made its money.”
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News and analysis for the well-informed compliance or audit exec.
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Our lowest price ($1 per day) for one year.
2024-04-29T11:39:00Z By Neil Hodge
The European Union’s strong stance on whistleblower protection has been undermined by member states’ wildly different approaches to punishing organizations that fail to safeguard people who raise concerns, says Wirecard whistleblower Pav Gill.
2023-11-28T17:00:00Z By Aly McDevitt
In this episode of the Digital Transformation of Compliance podcast series, Kyle Welch, a George Washington University associate professor of accountancy, discusses findings from his research on internal whistleblowing and compliance dashboards built by publicly traded U.S. companies to leverage hotline data.
2023-04-03T16:46:00Z By Kyle Brasseur
Big Four audit firm EY will be prohibited from taking on new public interest clients in Germany for two years following an investigation into its work at collapsed payment processor Wirecard.
2024-06-28T19:30:00Z By Jeff Dale
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
2024-06-20T15:40:00Z By Aaron Nicodemus
Compliance departments at financial institutions must become more involved in ensuring their firm’s operational resiliency to address emerging risks, the Treasury Department’s Office of the Comptroller of the Currency said in its semi-annual risk perspective.
2024-06-07T22:34:00Z By Adrianne Appel
Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.
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