UK regulator flags audit flaws at this crypto firm

The UK (UK) regulator has been quick to establish much-needed clarity around the cryptocurrency ecosystem. Amid this disruption, the Financial Reporting Council (FRC) flagged a flaw in Revolut’s annual report.

UK regulator finds high risk

According to a report, Revolut, a financial technology company, arrives under pressure from its auditors. He is asked to improve internal controls because the British regulator has spotted potential flaws in his accounts. They mentioned an unacceptably high risk of material misstatement in their report.

Revolut is a growing payment group in the UK. He’s been on the regulator’s radar because of his string of high-profile defections. The report says some insiders familiar with the latest audit quality inspection leaked this information.

BDO’s audit suggested the company was suffering from “inadequate” revenue recognition. The regulator said the results show a risk of undetected material misstatement. Although he also mentioned a lack of accountability in Revolut’s payment processes.

Revolut approval expected

Meanwhile, Revolut is believed to be the latest company to seek permanent FCA approval to offer digital asset services in the country. However, he is still waiting for an answer. The regulator deals with the crypto group by being concerned with anti-money laundering processes.

In March, the FCA also announced that a small number of companies could remain on the temporary register. These crypto companies are requested to stop services until further notice.

The report says auditors are increasingly picky compared to last year. This attention can be seen as they get 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 regulation, the UK and EU were split over industry rules.