By Sarah Sloat 
 

Shares in Wirecard AG (WDI.XE) dropped Wednesday after the payments company said that it complied with reporting obligations in Singapore but restrictions set by local authorities meant auditors couldn't conclude an audit of its subsidiary's balance sheet.

The statement follows a report in German newspaper Handelsblatt which said auditors at Ernst & Young declined to certify the subsidiary's 2017 balance sheet, citing documents from Singapore supervisory authority Acra.

At 0857 GMT, Wirecard shares traded 5.5% lower at EUR114.60.

"We cannot confirm the adequacy, completeness and accuracy of the financial statements, nor can we estimate the extent of any adjustments that may be required to the financial statements of the company," Handelsblatt quoted auditors as saying, citing the documents.

Wirecard said the local financial statements for 2017 were audited based on local accounting standards, SFRS. However, due to restrictions imposed by an investigation in Singapore, some documents weren't entirely available and the local auditor couldn't "conclude a final audit opinion based on local standards."

The lack of certification wasn't due to "irregularities," Wirecard said, "as mistakenly suggested in the article."

Wirecard shares have been volatile over the past months due to questions about its accounting methods, which the company has repeatedly defended.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

November 20, 2019 04:17 ET (09:17 GMT)