In a controversial move, Deutsche Bank’s asset manager DWS has appointed EY as its new group auditor—despite suing the firm for its role in the Wirecard scandal. This marks a high-profile win for EY after a two-year ban from acquiring new listed clients in Germany due to its audit failures in the Wirecard collapse. Shareholders will vote on the appointment for the 2026 financial year, though Deutsche Bank’s 80% stake in DWS makes approval a near certainty.
KEY POINTS:
- EY Scandal Legacy: Barred from new audit clients in Germany after Wirecard failures; ban lifts in March 2026.
- DWS Contradiction: Suing EY over Wirecard while appointing it as group auditor.
- Conflict of Interest? DWS says no—subsidiaries suing EY will be audited separately by Mazars.
- EY’s Comeback? Despite reputational damage, EY lands DWS as its second major post-ban client after Qiagen.
- Big Money at Stake: DWS funds bought Wirecard shares worth hundreds of millions before the collapse.
SHORT NARRATIVE:
DWS is making waves with its decision to appoint EY as its new auditor—while simultaneously suing the firm over Wirecard. The German asset manager insists there’s no conflict, as Mazars will audit subsidiaries suing EY, with results incorporated into EY’s group audit. But the optics are questionable: EY, tainted by its role in Wirecard’s decade-long fraud, is regaining its foothold despite reputational damage and a two-year regulatory ban.
EY’s return to the German audit scene is gaining momentum. Having already secured Qiagen, the DWS mandate signals that the scandal-plagued firm is still a dominant force. Investors, however, may wonder—can EY truly be trusted again?
CALL FOR INFORMATION:
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