Following the announcement regarding its delayed financial report, Revolution Beauty has stated that it will now be calling in independent external advisors to investigate its audit failures.
It comes as its auditors, BDO LLP, raised “serious concerns” within its work on the fiscal year 2022 audit, including the group’s ability to provide sufficient and accurate audit evidence and the validity of certain commercial arrangements arranged by the company.
In August, Revolution issued a statement announcing it would not be in a position to publish its final results and annual report by the August 31 deadline due its auditors concerns.
Under BDO’s advice, the company has announced it has appointed Macfarlanes LLP and Forensic Risk Alliance to carry out an independent investigation into the matters highlighted.
As of September 21, Revolution said in a release that it had a net debt of 16.1 million pounds and a 40 million pound revolving credit facility which it believes will provide sufficient liquidity for its current requirements.
It did note that it is currently in breach of its facility agreement due to the issues, however the banks have continued to be supportive and “the full facility remains available to the group”.
The board is expecting that the investigation will take several months to complete, with any announcements to be made as and when appropriate.