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Regarding that, may I ask slightly off topic, since I probably missed several Wirecard posts on HN: Can anyone explain to me how it is possible to make 1.9 bill
by jonathanstrange 6y ago
Regarding that, may I ask slightly off topic, since I probably missed several Wirecard posts on HN: Can anyone explain to me how it is possible to make 1.9 billion Euro disappear, or even somehow account them wrongly in case they never really existed? This seems so incredible to me, given how my bank checks every cent when I do a wire transaction.
Isn't there some constant accounting and auditing when you handle such amounts of money? Shouldn't it be immediately clear to anyone who checks the transactions where the money went and if it was there? And aren't there also electronic safeguards for suspicious transfers and so on?
- the-dude 6y ago~2B is peanuts among accounting scandals. In NL we had our flagship grocery chain inflate the numbers by ~10B in 2003.
- ArnoVW 6y agoParmalat invented 15 billion euros, between 1990 and 2003, having an annual revenue of 5 billion. Everything started breaking down only when they defaulted on a 150 million dollar bond, despite reporting 4 billion in liquid assets assets. https://www.econcrises.org/2016/11/29/parmalat/ https://www.econcrises.org/2016/11/29/parmalat/
- avianlyric 6y agoYeah there is. Unfortunately checks and balance don’t tend to work very well when the people operating them, are the same as the people committing the fraud. Eventually it was an external audit that caught them out. Also the 1.9 billion didn’t really disappear, it never existed in the first place, so there wasn’t really anything to misplace.