**Revolut, a British Digital Bank Reports Profits for First Full Year, but Audit Firm BDO Expresses Doubts**

According to reports, the long-delayed accounts of Revolut, a British digital bank, showed that the company achieved its first full year profit in 2021, but the audit firm BDO expressed doubts about these figures. Specifically, it stated in its accounts that it was unable to verify three quarters of the revenue reported by Revolut – $765 million – and warned that certain information could be “materially misstated.”.

The audit firm BDO suspects that there is a “significant misstatement” of the $765 million revenue in Revolut’s accounts

Revolut, one of the most popular digital banks in the UK, has reported its first full-year profits in 2021. However, an audit firm, BDO expressed doubts over the company’s figures, stating that it was unable to verify three quarters of the reported revenue. The audit firm also noted that certain information may be materially misstated. This article delves into the details of the accounts released by Revolut, their profitability, doubts expressed by BDO, and the potential implications of these developments on the company’s operations.

**Overview of Revolut**

Revolut was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko as a digital bank that initially provided foreign exchange services. Over the years, the company has expanded to offer a wide range of services, including stock trading, cryptocurrency exchange, insurance, among others. It has managed to attract millions of customers worldwide and has a presence in over 35 countries. Despite its rapid growth, the company has posted losses in previous years.

**Revolut’s Accounts for 2021**

In their accounts, Revolut reported a £122.3 million ($169.9 million) profit for the year ending December 31, 2020, compared to a £107.4 million ($149.2 million) loss the previous year. The digital bank’s revenue increased by about 57% to £261.6 million ($363.4 million) over the same period. The company’s financial report noted that these results were driven by an increase in customer numbers, an expansion into new markets, and the launch of new products and features.

**BDO’s Doubts and Criticisms**

However, BDO, the audit firm that carried out Revolut’s financial examination, expressed doubts over the figures reported by the digital bank. In a note appended to Revolut’s accounts, BDO stated that it was unable to verify three-quarters of the company’s revenue – a total of $765 million. Furthermore, BDO warned that there was a risk that certain information within the accounts could be materially misstated. The audit firm attributed the issues to lapses in Revolut’s financial recording and documentation processes, highlighting that the bank lacked a comprehensive control framework that could have prevented such inaccuracies.

**Implications of the Concerns Expressed by BDO**

The concerns raised by BDO have raised questions about Revolut’s operations, including its financial management and internal controls. Investors and customers may have doubts about the sustainability of the bank’s growth, which could diminish its market position. Furthermore, the regulatory authorities responsible for monitoring the activities of digital banks may take a closer look at Revolut’s financial activities to ensure that the company is acting within the relevant laws and regulations.

**Conclusion**

Revolut’s first full-year profit in 2021 is undoubtedly a significant achievement for the digital bank. However, the doubts raised by BDO over the figures reported have cast a shadow over these gains. It is essential for Revolut to address the concerns expressed by its audit firm and take steps to ensure that its financial records are accurate and reliable. Failure to do so could have far-reaching implications for the company’s financial stability, customer trust, and market position.

**FAQs**

1. What caused BDO’s doubts over Revolut’s accounts?
BDO stated that it was unable to verify three-quarters of the company’s revenue – a total of $765 million. Furthermore, BDO warned that there was a risk that certain information within the accounts could be materially misstated.
2. What could be the implication of the doubts raised by BDO over Revolut profits and accounts?
Investors and customers may have doubts about the sustainability of the bank’s growth, which could diminish its market position. Furthermore, regulatory authorities responsible for monitoring the activities of digital banks may take a closer look at Revolut’s financial activities to ensure that the company is acting within the relevant laws and regulations.
3. What should Revolut do to address the doubts raised by BDO?
Revolut should take steps to ensure that its financial records are accurate and reliable. The company needs to implement a comprehensive control framework that could prevent such inaccuracies in the future.