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Viewpoints (Auditing crypto-assets): Are tests of controls needed regarding the ownership assertion?

Learn about factors an auditor may consider when determining how to obtain sufficient appropriate audit evidence to support the ownership assertion for financial statements that contain material crypto-asset balances.

In evaluating an entity's ownership of crypto-assets, auditors are required to design an audit approach to obtain sufficient appropriate audit evidence that the entity owns the crypto-assets associated with its public address. Because of the pseudo-anonymity of crypto-asset transactions and the fact that there is no legal title recording the identity of the actual owner of a crypto-asset, it is challenging to verify the rightful owner of the assets.

Are tests of the operating effectiveness of controls always necessary? Are there specific facts and circumstances where it may be possible for an auditor to obtain sufficient appropriate audit evidence without testing the operating effectiveness of controls? Read this Viewpoints to find out.

Further reading

CPA Canada is committed to helping professional accountants understand the strategic importance of emerging technologies such as crypto-assets and blockchain. Check out our growing library of guidance resources to help you prepare for and manage the uncertainty they present.