Our history is clearly illustrated by economic developments that occurred before we became established.
The spectacular collapse of Frankfurter Allgemeine Versicherungs-AG in 1931 prompted the legislator to introduce mandatory auditing for public limited companies and insurance companies. The members of the newly created auditing profession were in charge of the mandatory audits. As they were liable for possible financial losses, the newly founded “Institute of Public Auditors in Germany, Incorporated Association (IDW)” took out liability insurance with Lloyd’s of London due to a lack of alternatives in Germany.
The takeover of power by the National Socialists in 1933 led to conflicts between the National Socialist Lawyers’ Association (NSRB) and the IDW. The Lawyers’ Association wanted to centralise the professional members in its organisation and concluded a contract with Lloyd’s at the turn of 1933/1934, which was also open to accountants, tax advisors and other accountants. The IDW was no longer allowed to conclude new contracts. At the same time, the dramatic lack of foreign exchange in the German Reich in 1934 demanded a domestic solution. Now German insurers were also available to take out professional liability insurance with auditors: In the “Haftpflicht-Versicherungsgemeinschaft für Wirtschaftstreuhänder” founded in 1935, 18 insurers cooperated with IDW. When this community was dissolved in early 1936, the NSRB rejoined the insurance company. It initiated the “Wirtschaftstreuhänder-Pool in 1936, and all new contracts were now conducted via the NSRB. It also represented the professionals on the Pool Commission.