PCAOB Issues Publication on Inspection Observations Related to Crypto Assets
June 14, 2023
The PCAOB has issued Spotlight: Inspection Observations Related to Public Company Audits
Involving Crypto Assets. The publication discusses audit
deficiencies in which the auditor failed to perform certain procedures in
public-company audits of transactions involving crypto assets or crypto mining
activities. Specifically, audit deficiencies were observed in the following areas:
- Fraud and significant unusual transactions.
- Crypto asset ownership.
- Relevance and reliability of information used as audit evidence.
- Revenue recognition related to the transfer of crypto assets.
- Arrangements with mining pool operators.
In addition, the publication addresses best practices and reminders for auditors to
consider when performing their audit procedures.