Ethical and Audit Considerations of Cryptocurrency

Author: Blair Cook, Jennifer Ross Nicholson

Cryptocurrencies, such at Bitcoin and Ethereum, are just two of thousands of emerging solutions to create frictionless global transactions between counterparties. Additionally, cryptocurrencies are positioning themselves to become the “new gold” of the modern world as a store of value and immune from geo-political risk. The rise and fall of cryptocurrency prices has not deterred interest in the technology or the space, but is leading to every more practical, accessible and useful applications of blockchain technology.

This course uses several case studies to illustrate the audit and ethical considerations in the newly emerging sector. Few accountants and auditors are conversant with cryptocurrency technology and this course is designed to improve your level of awareness and deepen your understanding of issues associated with issuing an audit opinion for clients in this space.

Publication Date: April 2021

Topics Covered

• Cryptocurrency the Business
• Cryptocurrency 101
• Blockchain 101
• The Rise of Cryptocurrency
• Audit Client Acceptance Issues
• Quadriga Quandary: An Ethical Dilemma
• Unique Audit Risks Arising in Cryptocurrency
• The Slow Demise of Quadriga
• The Curious Case of Cotton's Missing Coins

Learning Objectives

• Describe the applications of cryptocurrency and blockchain technologies
• Identify the audit consideration factors for client acceptance and continuance
• Identify and address specific audit risks unique to cryptocurrency transactions and balances
• Describe ethical issues arising that may arise while working in a new sector that has few regulations and undefined rules
• Recognize the role of miners in cryptocurrency
• Identify characteristics of blockchain technology speaks to the inability of any one person to change a transaction on the blockchain
• Describe QuadrigaCX's core business purpose
• Identify a key audit risk for a client engaged in cryptocurrency transactions

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None