PCAOB Posts Spotlight on Audits Involving Cryptoassets

Today the PCAOB posted a Spotlight on Audits Involving Cryptoassets – Information for Auditors and Audit Committees(PDF). A key objective in the Board’s Strategic Plan is to monitor the development and implementation of emerging technologies to analyze their implications for the quality of audit services.

PCAOB staff has observed that cryptoassets, including Bitcoin – the largest by market value – have recently begun to be recorded and disclosed in issuers’ financial statements. In addition, when performing inspections of auditors of some smaller issuers, PCAOB staff has observed situations where transactions involving cryptoassets were material to the financial statements.

This document highlights considerations for addressing certain responsibilities under PCAOB standards for auditors of issuers who are transacting in or who hold cryptoassets. We also suggest questions that audit committee members could consider asking their auditors when transactions involving cryptoassets or holdings of cryptoassets are material to the issuer’s financial statements.

The information in this document may be of particular interest to the auditors and audit committee members of issuers that are beginning to transact in, or hold cryptoassets.

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About the PCAOB

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.