AICPA upgrades guide for auditing digital assets.

TLDR:

• The AICPA has updated its practice aid for accounting and auditing of digital assets
• New guidance has been added on auditing the valuation of digital assets and audit procedures surrounding their existence, rights, and obligations

The AICPA has updated its free practice aid for the accounting and auditing of digital assets, adding new guidance on auditing their valuation and auditing procedures surrounding their existence, rights, and obligations. The practice aid is regularly updated to keep accounting professionals and audit practitioners informed of rapidly evolving developments in the digital assets field.

The practice aid, Accounting for and Auditing of Digital Assets, is intended to provide nonauthoritative guidance on how to account for and audit digital assets under U.S. GAAP for nongovernmental entities and GAAS, respectively. The specific updates include consideration for auditing the existence, rights, and obligations of digital assets, auditing the valuation of digital assets, and an auditing Q&A specific to the Securities and Exchange Commission’s Staff Accounting Bulletin No. 121 (SAB No. 121).

Ami Beers, senior director of assurance and advisory innovation for AICPA & CIMA, stated that this updated content adds valuable auditing guidance on testing assertions in the two key areas and that the practice aid has switched from a narrative structure to a Q&A format to provide more focused guidance on key topics. The entire practice aid was updated to align with Statements on Auditing Standards SAS No. 143 and SAS No. 145.

To access the practice aid, visit the download page.