Bitcoin and Beyond: Crypto Asset Considerations for Auditors/Forensic Accountants

Given the relative nascency of digital assets, we provide a holistic overview of the topic. This article first places digital assets within the context of money and describes the microstructure of a transaction using crypto assets. We then focus on the considerations that digital assets present and explain auditor considerations associated with digital assets for auditors. We address the current accounting treatment of digital assets and explain the challenges posed by digital assets for forensic auditors regarding management assertions. We identify the fraud risk factors that auditors should be aware of and describe potential innovations in the digital currency markets.