Audits of British Fintech Revolut Under Scrutiny Over Flaws

Audits of British Fintech Revolut Under Scrutiny Over Flaws
  • The authorities also pointed up the problems with BDO’s assessment.
  • BDO received £650,000 for verifying the financial records of Revolut.

The audits of pro-cryptocurrency bank Revolut reportedly had problems, as reported by the Financial Times, United Kingdom. A Financial Reporting Council (FRC) assessment from July said that the audit of a certain corporation (which was not identified) had flaws. The FRC said that there was “the risk of an undetected material misstatement was unacceptably high.”

On the other hand, sources close to the situation have revealed to Financial Times (FT) that Revolut is the undisclosed company. BDO, one of the leading accounting companies in the world, conducted Revolut’s audit. The authorities also pointed up the problems with BDO’s assessment of the payment processes of crypto-friendly banks.

Firm’s Valuation Reached $33 Billion

A source close to the matter also said that BDO’s stringent approach may force Revolut subsidiaries to be late in completing their financials. It is imperative that Revolut Group Holdings Ltd, the parent business, and Revolut Ltd. submit their 2021 financial statements by the end of September.

In addition, as of the 10th of June, Revolut NewCo UK’s financial reports were delayed. Revolut FIC Ltd. and Revolut Travel Ltd. are also anticipated to submit their documents before the month’s end. Revolut is the second most valued financial technology business in Europe. In an $800 million investment round, the firm’s valuation reached $33 billion.

In the meanwhile, BDO received £650,000 for verifying the financial records of the cryptocurrency-friendly financial institution. Recently, BDO has been in the news about cryptocurrencies due to a cooperation between its Italian branch, BDO Italia, and Tether. For the quarterly audits, the company will collaborate with the stablecoin provider. Tether has long taken heat from the cryptocurrency community for failing to conduct a comprehensive audit of its reserves. 

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