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.

Are crypto asset transactios auditable?

However, the distinct nature of the crypto asset ecosystem from the typical financial instrument market generates new risks and issues, making it more challenging for auditors to obtain reasonable and sufficient audit evidence for financial statement audits in which crypto asset transactios are involved.

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?

Could audits solve crypto's transparency problem?

Audits could solve crypto’s transparency problem. Why is that so hard? EY, PwC, Deloitte, and KPMG are accounting’s Big Four. After a year of crypto crack-ups, politicians and industry leaders are asking how to prevent another FTX or Celsius from happening in the first place. Audits would be a good place to start.