Wirecard chief Braun arrested

This was expected. A question comes to mind: Why did it take E&Y so many years to discover the made up holdings? Something like this means that we have not seen the bottom at 16 euros for WIRECARD. I saw this coming since 2010 (separate story). I didn't shortsell WIRECARD because no one knows if and when an accounting firm will play ball with their client. The stock could have gone the other way with a clean bill of health from an accounting firm.

I asked an auditor how his ilk verifies "Cash at Bank" figures. He told me, we look at the bank statement submitted by the audited company. I asked him, what if it's Photoshopped. He didn't know what Photoshopped meant.

Internet Banking has been around for nearly 20 years. How hard is it for auditors to log in to a company's bank account and see for themselves what is the bank balance?

15 years ago, when I was in Germany, I used t hear the phrase “Gute Frage, Naechste Frage” regularly. Translating to “Good Question, Next Question”, this is the stock answer I got in Germany whenever I asked a tricky question or a question to which there is no answer.

I guess 15 years later, we might get the same answer even today to the above question.   

OMG it's worse than I thought:

EY failed to ask for Wirecard bank statements for 3 years - ft.com