[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-159706-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-159706-en":131},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","considerations-for-auditing-cryptocurrencies","Considerations for Auditing Cryptocurrencies","","Publication outlining common audit risks for cryptocurrencies and providing example procedures to address them. Covers how blockchain type and transaction characteristics influence audit risk and evidence gathering, including permissionless versus permissioned networks and implications for transparency and verification. Breaks down cryptocurrency categories and how different interactions (holding, custody, trading, staking, mining) affect audit planning. Emphasizes ethical considerations and relevant auditing/ethical standards, and notes scope limits: stablecoins, other digital assets, mining/staking audits, and custodian coverage are not comprehensively addressed.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/considerations-for-auditing-cryptocurrencies/159706/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/considerations-for-auditing-cryptocurrencies/159706.png","ImageObject",300,407,{"name":42,"@type":43},"Mia  ","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-31","2026-08-29",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",21,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"How does the type of blockchain affect cryptocurrency audit risks and procedures?","Question",{"text":63,"@type":64},"The blockchain’s permission model influences audit evidence access and verification. Permissionless networks often provide publicly available data but may limit transparency due to pseudo-anonymity. Private/permissioned chains typically reduce anonymity challenges.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What areas of interaction with crypto assets are considered for audit planning?",{"text":68,"@type":64},"Entities may hold cryptocurrencies directly or via a custodian, trade, provide exchange services, or be exposed indirectly through instruments like crypto-related ETFs. The nature of interaction drives the associated audit risks and procedures.",{"name":70,"@type":61,"acceptedAnswer":71},"Does the publication provide a comprehensive list of risks and audit procedures?",{"text":72,"@type":64},"No. The publication is intended to introduce core concepts, highlight key ethical considerations and common risks, and provide example procedures. It explicitly states it does not contain a comprehensive list.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},159706,1788021474,{"code":4,"msg":82,"data":83},"success",[84,88,92,96,101,106,111,115,120,123,127],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Exam",70,"exam",{"id":97,"doc_module":4,"doc_module_name":25,"category_name":98,"show_sort_weight":99,"slug":100},5,"Comic",60,"comic",{"id":102,"doc_module":4,"doc_module_name":25,"category_name":103,"show_sort_weight":104,"slug":105},6,"Technology",50,"technology",{"id":107,"doc_module":4,"doc_module_name":25,"category_name":108,"show_sort_weight":109,"slug":110},7,"Healthcare",40,"healthcare",{"id":112,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":113,"slug":114},8,30,"research-report",{"id":116,"doc_module":4,"doc_module_name":25,"category_name":117,"show_sort_weight":118,"slug":119},9,"Religion & Spirituality",20,"religion-spirituality",{"id":118,"doc_module":4,"doc_module_name":25,"category_name":121,"show_sort_weight":118,"slug":122},"World Cup","world-cup",{"id":124,"doc_module":4,"doc_module_name":25,"category_name":125,"show_sort_weight":124,"slug":126},10,"Lifestyle","lifestyle",{"id":128,"doc_module":4,"doc_module_name":25,"category_name":129,"show_sort_weight":97,"slug":130},19,"General","general",{"code":4,"msg":82,"data":132},{"doc_id":79,"user_id":133,"nickname":42,"user_avatar":134,"doc_module":4,"category_id":112,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":140,"language":141,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":142,"faqs":143,"seo_title":144,"seo_description":12,"update_tm":80,"read_time":145,"preview_page_count":4},687207024478,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","19 September 2024  \nThis publication highlights common risks in the audit of cryptocurrencies and provides examples of procedures that can be performed to address these risks. It is not intended to be a guide, and it does not provide a comprehensive list of risks or audit procedures.  \nCONTENTS  \nIntroduction .............................................................................................................................. 2  \nEthical considerations .............................................................................................................. 3  \nRisk assessment...................................................................................................................... 4  \nUnderstanding the entity ................................................................................................... 4  \nEntity’s risk assessment.................................................................................................... 4  \nWider processes and controls ........................................................................................... 5  \nSpecific risks ............................................................................................................................ 9  \nOnboarding ....................................................................................................................... 9  \nValuation Risks ............................................................................................................... 11  \nOwnership and Control ................................................................................................... 16  \nRisks around accuracy of data ........................................................................................ 18  \nNext steps.............................................................................................................................. 22  \nAbout ICAEW's Digital Asset Working Party and Tech Faculty .............................................. 23  \nAppendix 1 – What is blockchain ........................................................................................... 24  \n.............................................................................................................................................. 25  \nINTRODUCTION  \nThe term 'crypto assets' encompasses a wide range of virtual assets which reside on a blockchain and are cryptographically secured and controlled. The type of blockchain on which acryptocurrency resides will affect the audit risks and procedures to be performed when auditing it. For example, with a permissionless blockchain network getting data may be more straightforward as data is publicly available and easier to access. However, as there is no verification of participants, transactions and wallet balances may be pseudo-anonymous, limiting transparency. Conversely, for cryptocurrencies on private and permissioned blockchains anonymity is typically less of a challenge. A high-level overview of blockchain technology is provided in Appendix 1.  \nCrypto assets can be broken down into various categories including asset backed tokens (ABTs), non-fungible tokens (NFTs), security tokens, utility tokens, cryptocurrencies (including stablecoins), and central bank digital currencies (CBDCs) .  \nWhile these categories are distinct, there are similarities and differences in the nature of the assets, which may impact audit risks and procedures. For example, many digital assets have similar risks relating to proof of ownership and control and valuation. However, audit procedures to obtain evidence to address these risks may be different.  \nIn addition, individuals and organisations can interact with digital assets in various ways including holding, providing custodian services, payments, trading, staking, and mining. The nature of the interaction will determine the associated audit risks and procedures.  \nThe focus of this publication is the audit of cryptocurrencies, and ent","cbCaikBYrMsU9NXr","https://ap.wps.com/l/cbCaikBYrMsU9NXr","pdf",359954,25,"English","# Introduction\n## Ethical considerations\n## Risk assessment\n## Understanding the entity\n## Specific risks\n## Next steps\n## Appendix 1 – What is blockchain","[{\"question\":\"How does the type of blockchain affect cryptocurrency audit risks and procedures?\",\"answer\":\"The blockchain’s permission model influences audit evidence access and verification. Permissionless networks often provide publicly available data but may limit transparency due to pseudo-anonymity. Private/permissioned chains typically reduce anonymity challenges.\"},{\"question\":\"What areas of interaction with crypto assets are considered for audit planning?\",\"answer\":\"Entities may hold cryptocurrencies directly or via a custodian, trade, provide exchange services, or be exposed indirectly through instruments like crypto-related ETFs. The nature of interaction drives the associated audit risks and procedures.\"},{\"question\":\"Does the publication provide a comprehensive list of risks and audit procedures?\",\"answer\":\"No. The publication is intended to introduce core concepts, highlight key ethical considerations and common risks, and provide example procedures. It explicitly states it does not contain a comprehensive list.\"}]","Considerations for Auditing Cryptocurrencies | PDF",63]