This follows a review of the outcome of listed company audits over a two-year period from 2021 to 2022, and specific practices related to the audit of crypto related issues by the US Public Company Accounting Oversight Board (PCAOB).

‘The use of crypto assets presents unique audit risks to public companies and broker-dealers and requires an appropriate risk assessment and audit response by audit firms,’ the PCAOB report stated.

Auditors need to emphasise the importance of performing tests of controls and substantive procedures that are responsive to the assessed risks of material misstatement identified. They also need to take into consideration the public company’s or broker-dealer’s relationships and transactions with its related parties, and must use professional scepticism when evaluating potential risk of material misstatement due to error or fraud.

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