Wirecard (A): The Rise of German Fintech

內容大綱
After Wirecard AG (Wirecard) collapsed in 2020, the financial technology (fintech) company, revealed as an elaborate fraud, came to be known as Germany’s Enron as investigators confirmed many of the concerns that had been raised by whistle-blowers and journalists. For instance, they confirmed that the company was using round-tripping to inflate revenues and that escrow accounts in Southeast Asia did not exist. Auditors had raised concerns for years, but then signed off on the company’s financial statements. What were the responsibilities of regulators and auditors with regard to the company, and what red flags should they have paid attention to?
學習目標
The Wirecard case, with plots and twists one might find in a spy novel, is an example of the idiom “truth is stranger than fiction.” It starts out as the ideal technology success story, in which entrepreneurs develop a technology (mobile payments) that disrupts incumbents (traditional banks). Yet, shortly into the story, warning signs begin to appear. The case exposes students to a difficult situation that examines business, ethical, and legal challenges. After working through the case and assignment questions, students will be able to do the following:<ul><li>Describe the roles of whistle-blowers and journalists in revealing corporate malfeasance, and discuss the risks they take.</li><li>Outline the roles of auditors and regulators in examining public sector.</li><li>Explain how regulator conflicts of interest can undermine public confidence in financial markets.</li></ul>
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