What is a crypto audit?

From an internal auditor’s perspective, a crypto audit is a review of an organization’s use of cryptocurrencies, such as Bitcoin and Ethereum, to ensure that proper controls are in place. While crypto assets have their own intricacies, in many respects, a crypto audit resembles a cash or foreign exchange audit.

How difficult is it to audit cryptocurrency?

Although it has existed for more than a decade, cryptocurrency is still somewhat of a novelty. Any official guidance is almost nonexistent. As a result, it can be extremely difficult to audit. How do you classify it?

Are crypto audits becoming more proactive in designing effective internal controls?

This argues for the internal audit profession to become more proactive in designing effective internal controls in crypto environments.” Some of the large audit firms are developing crypto auditing software and analytical tools. Auditor training programmes for crypto are also becoming more prevalent.

Are crypto assets over- or understated?

“There is a real risk that crypto assets could be easily over- or understated given this lack of universal guidance,” says Ross Thompson, accountancy and finance lecturer from Arden University. “This means audit risks are higher, which should be considered during client acceptance and retention and planning audit procedures.