Revolut’s quest to secure a UK banking license took another turn on Tuesday amid reports that it’s planning to change auditors. According to The Standard, Revolut’s executives were apoplectic earlier this year when BDO’s audit included a note that raised concerns about the “completeness and occurrence” of a significant portion of its revenues.
Revolut considers auditor change as it eyes UK banking license
BDO said that $477m of its top line was at risk of being “materially misstated”; an evaluation that Revolut was unhappy with. Execs were also dismayed at the reaction to these remarks in the media. The Standard claims Revolut even instructed independent lawyers to try and change the media narrative. It appears that the debit card provider, which offers currency exchange, still bears a grudge and is looking to hire new auditors.
An imminent change is unlikely though the report claims BDO will continue in its role until the end of the current financial year. The audit-related challenges continue to be a major sticking point for Revolut as it attempts to secure approval for a long-awaited banking license in the UK. The red flag in March’s audit did little to smooth that process.
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Whether Revolut has addressed the IT control problems that were cited in the audit is not known. It did however state that its previous financial statements had provided a “true and fair view” of its operations, even if there was a different view of developments behind the scenes. Despite its struggles, Revolut remains an attractive proposition for investors. A funding round in 2021 valued it at $33bn and it continues to deliver healthy growth in the UK.
