Independent Auditor’s Expert on a leading Global Digital Asset Exchange

Context

Despite the growth of the digital assets industry, the unique and complex business environment of firms holding and utilising digital assets has led to a reluctance by many auditors to take on companies within the space.

The major challenge to date has been the lack of comprehensive experts within audit firms to understand, let alone analyse and assess digital asset-based business operations efficiently and effectively. Digital asset audits require expert digital asset knowledge to sufficiently interpret and implement specific guidance, particularly in the context of the creation of bespoke procedures. While traditional auditors may struggle to do this in-house, it has never been more important for this complex, yet rapidly growing, industry

Appold recently acted as an Auditor’s Expert in the financial audit of a leading global digital asset exchange. By leveraging Appold’s technical expertise alongside the Auditor’s financial proficiency, a complete Audit was undertaken proficiently, which included:

  • Reviewing IT controls in the context of the entity’s substantial holding of digital assets.

  • Assessing governance and verification of assets procedures.

  • Revenue generation verification.

  • On-chain transaction validation.

  • Internal systems to blockchain reconciliation testing

  • Platform AML and KYC compliance checks.


Services

Project requirements:

  • Research & Analysis

  • Operational due diligence

  • On-chain transaction testing

Partner Comment:

"The digital assets industry is at a pivotal point in its evolution, and the complexities involved in auditing firms within this space cannot be overstated. Traditional audit firms often face significant challenges in navigating the intricacies of digital asset operations due to a lack of specialised knowledge. This gap poses a risk not only to the audit process but also to the overall trust and credibility of digital asset firms in the eyes of institutional investors and regulators.

At Appold, we recognise that robust and comprehensive audits are essential for the sustained growth and maturation of the digital assets industry. By partnering with traditional auditors, we bring our deep expertise in digital asset technology and operations to the table, ensuring that audits are thorough, accurate, and aligned with industry-specific guidance.

For this particular client, a leading global digital asset exchange, our collaboration resulted in a meticulous audit that addressed critical areas such as IT controls, asset governance, and on-chain transaction validation. By implementing stringent procedures and leveraging our technical know-how, we were able to provide a level of assurance that meets the highest standards of financial scrutiny.

As the digital asset sector continues to expand, the need for expert audits will only grow. Firms must prioritise transparent and reliable audit processes to build confidence among stakeholders and pave the way for broader acceptance and integration of digital assets in the mainstream financial ecosystem. Our role as an Auditor’s Expert exemplifies the importance of independent specialised knowledge in achieving these goals and underscores our commitment to supporting the advancement of this dynamic industry."

— Rob Gaskell, Partner