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 can a cryptocurrency audit firm improve a client's competence?

If an audit client engages in cryptocurrency transactions, the auditors should increase their cryptocurrency competence level through training and education, hiring experts to be on audit teams, and creating a crypto-aware culture within the audit firm.

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.

Is cryptocurrency a threat to audit independence?

The Accounting Blockchain Coalition (2019) discussed a possible threat to independence if the auditor obtains possession of the client's private key accessing the client's cryptocurrency assets during existence testing.