New: Digital assets practice aid addresses auditing of lending, borrowing

The AICPA updated its digital assets practice aid to assist practitioners with scenarios involving crypto lending and borrowing.

Accounting for and Auditing of Digital Assets features a new chapter in its auditing section titled “Considerations for Crypto Intangible Asset Lending and Borrowing.”

The new section:

• Provides examples of substantive procedures that could address risks of material misstatement associated with crypto intangible asset lending and borrowing transactions;
• Includes different scenarios, one in which the borrower of the crypto intangible asset is not required to post collateral and one in which the borrower is required to post collateral; and
• Includes example procedures from both borrower and lender sides for each scenario.

“Auditing crypto lending and borrowing transactions can be complicated, and until now auditors have operated with a minimal amount of clear guidance,” Di Krupica, CPA, senior manager – Digital Assets, Assurance and Advisory Innovation at the AICPA, said in a news release. “This new resource is designed to make it easier for auditors to do their jobs effectively and help promote transparency for investors, companies, and the broader public.”

For related resources and insights, visit the AICPA Digital Assets and Blockchain page.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.