FinTech: Revolut’s Response To Audit Report Irks Both Its Board And Accounting Fraternity

March 30, 2023 | FinTech, News
https://dailyalts.com/wp-content/uploads/2023/03/Nik-1.jpeg

Revolut, the UK challenger bank, is hoping to land its UK banking licence soon.

Revolut, a UK-based fintech company, has been criticized by its own board for portraying a critical audit report as a clean bill of health. The company issued a public statement insisting that the audit by BDO confirmed that the financial statements gave a true and fair view of the company’s affairs.

However, BDO had warned that revenues “may be materially misstated” and said the overdue 2021 accounts gave a true and fair view “except for the possible effects of the matters described in the ‘basis for qualified opinion’ section of our report.” (FT)

The audit had noted shortcomings in Revolut’s IT controls and raised concerns about the completeness and occurrence of revenues within three business divisions, which accounted for 75% of the group’s total reported revenues for 2021.

Notably, BDO’s audit fee from Revolut rose more than fourfold to £4.5mn for 2021.

Some board members felt that Revolut’s statement was an overreaction and showed a lack of understanding of what BDO’s opinion meant.

The board has been under pressure to improve Revolut’s culture and governance as it seeks a UK banking license.

Meanwhile, Schillings, Revolut’s lawyers wrote two letters to the Financial Times demanding changes to a news report about the audit.

The firm then clarified as follows: “The letters put forward our client’s position in a clear and unambiguous manner. This was not misleading and at all times we acted in line with our professional obligations.”

Both Revolut and BDO declined to comment on the matter.

Related Story: Revolut Reaches Profitability Milestone In 2021

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/06/Adyen-Gig-Worker.jpg
FinTech: Adyen Launches ‘Payout Services’ For Faster Payouts To The Gig And SMB Economies
June 2, 2023     FinTech, News

Adyen, a global financial technology platform, has launched Payout Services, allowing its customers to make instant payouts to their users or partners. By connecting directly to real-time payment rails, Adyen’s…

https://dailyalts.com/wp-content/uploads/2023/06/349007845_952167809344663_7026081062910546259_n.jpg
Digital Assets: Oracle Red Bull Racing Seeks To Digitize Engagement With Fans On The Sui Blockchain

Oracle Red Bull Racing has announced a multi-year partnership with software company Mysten Labs to collaborate on Sui, which will serve as the team’s Official Blockchain partner. Sui, a Layer…

https://dailyalts.com/wp-content/uploads/2023/06/LOREAL_0301913_BD.jpg
Venture Capital: Bold, L’Oréal’s Venture Capital Fund, Buys A Stake In Exotic Cosmetic Ingredient Maker Debut
June 2, 2023     News, Venture Capital

L’Oréal’s (EPA: OR) corporate venture capital fund, BOLD, has announced a minority investment in Debut, a US biotech company specializing in the discovery, formulation, and manufacture of novel ingredients and…

https://dailyalts.com/wp-content/uploads/2023/06/48517139187_6e392290f9_c.jpg
Artificial Intelligence: In Flight Simulation, An AI Drone Tries To Kill Its Own Handler
June 2, 2023     Artificial Intelligence, News

During a simulated test at a London summit, an AI-controlled drone turned against its human operator, raising significant ethical concerns. Air Force Colonel Tucker “Cinco” Hamilton shared the incident, which…