Fiduciary Relationships

The fraud at Wirecard took place in Asia through business activity with third-party acquirers (TPA). The scandal resulted in 1.9 billion Euro in payment funds not being available. They were allegedly held in escrow accounts. We will therefore first deal with types of fiduciary relationships and accounting consequences and then go into the necessary audit procedures. We show which audit procedures had to be carried out to ensure that the cash shown on the balance sheet actually existed. If the audit would have been provided properly, the fraud could have been discovered very quickly. We uncover the massive deficiencies in the audit procedures.