Revolut not happy with how fintech deals with audit red flags: Report

Crypto-friendly fintech Revolut is reportedly having immoderate issues related to its precocious released yearly study for the twelvemonth ending December 2021.

Revolut, a British-Lithuanian neobank that allows customers to bargain and merchantability crypto, reported its first-ever afloat twelvemonth of nett connected March 1, 2023. The steadfast said it generated a gross of 636 cardinal British pounds ($769 million) successful 2021, which was a important surge from 220 cardinal pounds ($266 million) successful 2020.

The fiscal study was reviewed by autarkic auditors from the planetary accounting web BDO, which confirmed that Revolut’s fiscal statements provided a “fair presumption of the authorities of the group’s and of the genitor company’s affairs” arsenic of Dec. 31. The auditors stressed that the study was close “except for the imaginable effects of the matters described successful the ground for the qualified sentiment section” of the report.

In the sentiment section, BDO argued that the accounting steadfast was incapable to get capable accusation related to “completeness and occurrence of definite revenues” for 2021, stating:

“We person concluded that wherever the different accusation refers to gross oregon related balances these whitethorn beryllium materially misstated for the aforesaid reason.”

Revolut has reportedly responded to BDO’s remarks, insisting connected the validity of its yearly report. The Financial Times reported connected March 30 that Revolut issued a nationalist connection and hired lawyers successful March successful bid to beryllium “misreporting” of the audit sentiment by BDO. The institution argued that the $769 cardinal revenues person been “independently verified” and were “not successful question.”

Related: ‘Crypto FUD’ — Industry outraged arsenic White House study slams crypto

The nationalist connection has seemingly been since taken down by Revolut arsenic immoderate committee members reportedly felt it was an “overreaction” and showed a deficiency of knowing of what BDO’s sentiment meant, according to sources cited by the FT.

The connection “was written by radical who astir apt didn’t afloat recognize the nuancing of an audit opinion”, said 1 source. It besides contained “inaccuracies”, different root claimed. The sources besides alleged that it was imaginable that Revolut’s existent revenues could either beryllium higher oregon little than stated successful the study due to the fact that immoderate transactions could beryllium missing.

Revolut declined to remark connected the substance to Cointelegraph. The steadfast besides didn’t respond to Cointelegraph’s query to stock the connection astir BDO’s sentiment conception arsenic it appears to person been taken down.

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