UK regulators target Revolut for 'material misstatements' in audit: report
"Auditors are much tougher now because they're getting beat up by their regulators," a person familiar with the Revolut situation reportedly said said.
New
The UK's Financial Reporting Council reportedly discovered flaws in the audit of cryptocurrency-enabled payments app Revolut, which included an "unacceptably high" risk of "material misstatement".
According to a report by the Financial Times on Monday, the UK's Financial Reporting Council criticized the results of a Revolut audit published in July by accountancy and business advisory firm BDO, saying the company had an 'inadequate' approach to revenue recognition and 'the risk of an undetected material misstatement was too high. The financial regulator reportedly said BDO had failed to sufficiently test Revolut's payment processes.
Revolut was valued as a $33 billion fintech company in July 2021 following an $800 million investment round led by Japanese financial firm SoftBank and US hedge fund Tiger Global . The Financial Times report suggested the payments company was under pressure from auditors to improve its internal controls in line with UK regulations.
“Auditors are much tougher now because they are getting beat up by their regulators,” a person familiar with the situation reportedly said.
At press time, Revolut was the only company operating in the UK under temporary registration status with the country's Financial Conduct Authority, or FCA. UK regulators require companies "carrying on crypto-asset business" to register with the FCA as part of their anti-money laundering and counter-terrorist financing compliance. However, 12 companies continued to
"Auditors are much tougher now because they're getting beat up by their regulators," a person familiar with the Revolut situation reportedly said said.
New
The UK's Financial Reporting Council reportedly discovered flaws in the audit of cryptocurrency-enabled payments app Revolut, which included an "unacceptably high" risk of "material misstatement".
According to a report by the Financial Times on Monday, the UK's Financial Reporting Council criticized the results of a Revolut audit published in July by accountancy and business advisory firm BDO, saying the company had an 'inadequate' approach to revenue recognition and 'the risk of an undetected material misstatement was too high. The financial regulator reportedly said BDO had failed to sufficiently test Revolut's payment processes.
Revolut was valued as a $33 billion fintech company in July 2021 following an $800 million investment round led by Japanese financial firm SoftBank and US hedge fund Tiger Global . The Financial Times report suggested the payments company was under pressure from auditors to improve its internal controls in line with UK regulations.
“Auditors are much tougher now because they are getting beat up by their regulators,” a person familiar with the situation reportedly said.
At press time, Revolut was the only company operating in the UK under temporary registration status with the country's Financial Conduct Authority, or FCA. UK regulators require companies "carrying on crypto-asset business" to register with the FCA as part of their anti-money laundering and counter-terrorist financing compliance. However, 12 companies continued to
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