SEC warns against ‘fake audits’ in crypto
The Securities and Exchange Commission (SEC) has warned about a worrying trend in which accounting firms are collaborating with cryptocurrency trading platforms with a track record of scandals and financial collapses within the cryptocurrency sector. Notably, the commission notes that certain players in the blockchain industry are promoting fake “audits” to attract investors. The SEC has warned against such non-audit agreements as they do not provide the same level of assurance as a proper audit of financial statements to investors. The report underscores the risks associated with these misrepresented “assurance” services, which the commission’s staff, PCAOB, and other experts in the field have already highlighted. The research focuses on accountants contemplating offering non-audit services to clients dealing with crypto assets. #SEC Chief Accountant Paul Munter warns of crypto "assurance" risks. Non-audit arrangements are not as rigorous ...