// Revolution Beauty has said it will undergo an investigation into its failure to complete its auditing quickly enough
// The business has drafted in law firm Macfarlanes LLP and consultants at Forensic Risk Alliance to kick off the probe
Revolution Beauty has called in investigators after its failure to complete its auditing quickly enough, as it warns over its full-year profits.
Law firm Macfarlanes LLP and consultants Forensic Risk Alliance will kick off an investigation into the business after its auditor, BDO, raised “serious concerns” over its inability to publish an audit report for the latest financial year.
The investigation is expected to take several months to complete, although an exact timeline is uncertain.
Last month the embattled beauty retailer had its shares suspended from the London Stock Exchange after its financial results were further delayed.
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At the time, the business said auditors had flagged accounting issues that could have a “material impact” on the annual profits, with potential adjustments needing to be made to stock and bad debt provisioning and revenue recognition.
“At this point it is difficult to estimate a timeline for the investigation, however, the Board considers that it may take several months to complete. Announcements will be made as appropriate,” said Revolution Beauty.
Derek Zissman, a non-executive director at the business, and its chief financial officer said: “We are taking BDO’s concerns very seriously and will conduct a full and independent investigation. We will continue to keep investors and stakeholders fully updated as the process continues.”
The beauty business also warned that its financial results for the forthcoming year will be materially below market expectations and the previous guidance given, as a result of macro headwinds and inflation.
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