The United Kingdom (UK) regulator have been hurling over building much needed clarity around the cryptocurrency ecosystem. Amid this disruption, Financial Reporting Council (FRC) has signaled a flaw in Revolut’s annual report.
UK regulator finds high risk
According to a report, Revolut, financial technology company landed under pressure from its auditors. It is asked to improve internal controls as the UK regulator spotted potential faults in its accounting. They mentioned an unacceptably high risk of material misstatement in their report.
Revolut is a growing payments group in the UK. It has been on the radar of the regulator over its string of high profile defections. The report stated that some insiders familiar with the latest audit quality inspection gave out this information.
BDO’s audit hinted that the company suffered from an “inadequate” take of revenue recognition. The regulator said that the results show a risk of undetected material misstatement. While it also mentioned a lack of accountability in Revolut’s payment processes.
Revolut approval awaited
Meanwhile, Revolut is reportedly the last company that asked for permanent approval by the FCA to offer digital assets services in the nation. However, it is still waiting for a response. The regulator is looking after the crypto group with a concern of anti money laundering processes.
In March, FCA also announced that a little number of companies would be able to remain on the temporary register. These crypto firms are ask to halt the services till further notice.
The report stated that the auditors are getting more challenging now compared to last year. This attentiveness can be seen as they are getting beaten up by the regulator. However, BDO’s latest approach could lead to delays in filing accounts for Revolut and other companies.
Earlier, Coingape reported that amid the need for crypto regulatory UK and EU stand divided over the rules around the industry.
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