The U.S. audit regulator said on Wednesday that auditors have fallen short in rooting out unusual transactions and assessing whether cryptocurrency mining revenue is properly accounted for when reviewing the financial statements of companies involved in cryptocurrencies. The U.S. Public Company Accounting Oversight Board (PCAOB) issued an "Opinion on Audits of Public Companies Involving Crypto Assets" to assess how auditors test their clients' crypto transactions or holdings.
As part of a cross-company review of emerging audit risks, the committee will increase these oversight efforts this year and will review how auditors deal with fraud risks for clients with large crypto transactions and holdings. Botic, head of the committee's inspection department, said that if cryptocurrencies are seen to have a significant impact on a company's financial statements or the company's activities, they will be inspected. (Accounting Today)