According to Bloomberg News yesterday, auditing firm PricewaterhouseCoopers (PwC) has added cryptocurrency audits to its services, and this asset type is gradually becoming the standard for traditional financial firms.
PricewaterhouseCoopers executive Ralph Weinberger said on the phone that in the past year, the PwC teams spent a lot of time designing tools to match the private key and public address of the encrypted asset account.
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Weinberger said that the auditor's tools do not have access to a dedicated alphanumeric security code that protects each key, but does allow PwC to verify that an entity is the sole owner of a particular cryptocurrency asset.
Auditing cryptographic assets is difficult, and this is one of the reasons why many institutional investors evade this area. The field has been plagued by problems such as fraud, theft and market manipulation. If the crypto-asset company is able to obtain audit approval from the Big Four accounting firms, this will help alleviate some of the market's concerns. Currently, the crypto asset market is experiencing the biggest rebound since 2017.
Bitcoin prices have more than tripled since the beginning of the year, driven by news of the launch of crypto assets by companies such as Facebook and JPMorgan Chase & Co.
Despite calls for increased industry transparency following scandals such as token loss and regulatory investigations, professional auditing of cryptographic assets has proven challenging. Accountants have been working hard to verify ownership of cryptocurrencies, and in an industry dominated by start-ups, many companies lack the risk management and process control that an experienced audit firm expects.
Currently, PricewaterhouseCoopers can audit 8 tokens, including Bitcoin and Ethereum. Weinberger said that because of the different blockchains used, each cryptocurrency requires dedicated auditing tools, which is why their design tools took so long.
The company used such tools when auditing the accounts of BC Technology Group Ltd., a Hong Kong-listed company. BC Technology Group Ltd. is a blockchain investment company with subsidiaries including OTC, an off-exchange password trader.