Banking Law News

Auditors Warn of ‘Overconfidence’ Risk with Crypto Clients

July 16, 2020, 1:36 PM

U.S. audit firms need to know just how heavily their clients are involved in cryptocurrencies and other digital tokens before they agree to take on their financial statement audits, according to guidance from the American Institute of CPAs.

Thursday’s non-authoritative guidance aims to fill in gaps in auditing standards as companies and nonprofit groups increasingly report digital tokens and cryptocurrencies on their books. The guide was released as an update to financial accounting guidance the group issued in December.

  • “If a firm has an insufficient understanding of the industry and environment when it accepts a client and fails to...
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