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 do I prepare for a cryptocurrency tax audit?

Therefore, the best way to prepare for a cryptocurrency tax audit is to maintain proper financial records and to retain an experienced Canadian cryptocurrency tax lawyer to assist you with the crypto tax audit process. What is the voluntary disclosure program?

Do cryptocurrencies need to be audited?

For this reason and due to the increased risks associated with off-balance-sheet cryptocurrencies, an auditor must perform the same audit procedures as for cryptocurrencies that are on the balance sheet. Crypto custody can have a material impact on the company and the audit.

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.