ABSTRACT
The collapse of German payment processing company Wirecard led to many (still unfolding) revelations about failed auditing processes. Using the story of the rise and fall of Wirecard, dubbed the “Enron of Germany,” this case seeks to stimulate student attention to critical auditing areas while highlighting how audits fail. It also provides a solid foundation for understanding how auditing regulation and standards may differ between nations, highlighting the United States and Germany. It is designed to improve students’ understanding of auditing regulation and practice and to improve research and critical thinking skills. It includes a description of key executives, corporate structure, revenue streams, potential red flags, and actions taken by Wirecard’s auditor, Ernst & Young. It then poses 14 questions for student response, using the case materials and their own research. The questions are customizable by faculty. This case is appropriate for both undergraduate and graduate auditing classes.
Data availability: Data are available from the public sources cited in the text.
