Crypto-friendly fintech Revolut reportedly has some issues related to its recently released annual report for the year ending December 2021.
Revolut, a British-Lithuanian neobank that allows customers to buy and sell cryptocurrency, reported its first full year of earnings on March 1, 2023. The firm said it generated revenue of ยฃ636 million ($769 million) in 2021, which was a significant increase of ยฃ220 million ($266 million). in 2020.
The financial report was reviewed by independent auditors from the BDO global accounting network, who confirmed that Revolut's financial statements provided a "fair view of the state of affairs of the group and the parent company" as of December 31. The auditors emphasized that the report was correct "except for the possible effects of the matters described in the basis for qualified opinion section" of the report.
In the opinion section, BDO argued that the accounting firm was unable to obtain sufficient information related to the "completeness and occurrence of certain income" for 2021, stating:
"We have concluded that when the other information relates to income or related balances, they may be materially misstated for the same reason."
Revolut has reportedly responded to BDO's comments, insisting on the validity of its annual report. financial time reported on March 30 that Revolut issued a public statement and retained lawyers in March to prove the "misinformation" in BDO's audit opinion. The company argued that the revenue of $769 million has been "independently verified" and "was not in doubt."
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Revolut has apparently removed the public statement as some board members reportedly felt it was an "overreaction" and showed a lack of understanding of what BDO's opinion meant, according to sources cited by the FT.
The statement "was written by people who probably didn't fully understand the nuances of an audit opinion," a source said. It also contained "inaccuracies," another source claimed. The sources also alleged that it was possible that Revolut's true revenue could be higher or lower than indicated in the report because some transactions could be missing.
Revolut declined to comment on the matter with Cointelegraph. The firm also did not respond to Cointelegraph's request to share the statement on BDO's opinion section, as it appears to have been removed.
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