Blockchain-based digital assets: the challenges for companies and external auditors

Abstract

Nowadays, we are experiencing an era of unprecedented innovation in the business world. As emerging technologies impact almost every organisation, blockchain has become one of the most debated. Furthermore, the rapid growth and volatility of blockchain-based digital assets has led to an increased global interest from governments, investors, central banks and regulators. More and more companies are gradually engaging in transactions with crypto-assets. However, the absence of clear and uniform regulation and the peculiar nature of these assets compared to typical financial instruments pose challenges both to companies that have to report relevant crypto-assets activities and transactions in their financial statements and also to external auditors that have to provide reasonable assurance on such statements. The goal of this thesis is to provide an analysis of these challenges of crypto assets on entities and audit firms. Following a theory-based introduction to the field of blockchain and crypto-assets, accounting and auditing issues will be identified.