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Not sure what their audit approach was (maybe it was a non-significant component and they performed other procedures over the residual), but yeah with foreign bank accounts there’s always a risk hence why I think they should have confirmed the balance regardless

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Yes agree, regardless they just effed up

This is very interesting as we are required by our global audit methodology to confirm 100% of our cash accounts. I think the problem was that the we relied on trustees to give us the information. Anyone who has been on a global audit would know that getting a confirmation back from a foreign bank can be quiet difficult. I think EY did screw this one but I would like to point out EY was purposely being misled as well.

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Everyone is spending so much time documenting controls up to the Pcaob’s standards I guess there is no time left to confirm cash

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Disagree with SA1. Confirmations can be very time consuming, especially when foreign. Trying to find the correct respondent, following up, etc

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Imagine you're the staff who was doing the cash section 😅 "immaterial balance; screenshot is sufficient evidence, SALY. NFWR" and then someone actually reviews it

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Haha- I read that as NSFW

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Yeah this is just crazy. Lots losing their job over this. Including the EY auditors who owned wirecard stock

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Throwing some shade there?

EY is a joke

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Oh god 😂😂😂😂

This is interesting because we also don't have cash confirmation as a required procedure. Now when you're talking foreign bank accounts...should prob confirm those regardless

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Used to work at Crowe, always required to do cash confirms. Public, private, material, IM.
Half the time they even wanted me to confirm ZBAs...

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It was a quarter of their balance sheet.....

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Woooooow

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