- The software already supports eight cryptocurrencies
- The solution enables the firm to offer independent evidence
- PwC says the tools may still have a few limitations
Professional consulting firm Price Waterhouse Coopers (PwC) has unveiled auditing software for clients who own cryptocurrencies. The auditing software solution already supports eight tokens namely bitcoin, bitcoin cash, bitcoin gold, bitcoin diamond, litecoin, ether, ERC20—OAX token and XRP cryptocurrencies.
Establish Crypto Asset Ownership
The “Big Four” auditing firm announced its auditing suite dubbed Halo via a press release published on June 19, 2019. According to the press release, the software solution will offer assurance services for companies that are engaging in crypto-related transactions.
PwC said their auditing solution will allow the firm to offer independent evidence of private-public key pairing to establish crypto asset ownership besides gathering information about transactions and balances from blockchains. The company that operates in at least 157 countries, where some auditing practices vary by geography did not specify whether the platform will become available globally. PwC’s global assurance leader James Chalmers stated:
“It is important as companies continue to digitize, we, as auditors, keep up with technology changes in the market, continue to develop audit tools that meet the needs of emerging technologies and serve the changing and developing demands of our stakeholders.”
A Specialized Platform
The Big Four accounting firms, PricewaterhouseCoopers (PwC), Ernst & Young (E&Y), Deloitte Touche and Klynveld Peat Marwick Goerdeler (KPMG) all audit leading cryptocurrency companies such as token projects and crypto exchanges. While the firms audit the crypto firms to varying degrees, PwC and E&Y are particularly involved in crypto auditing and have invested in the technology that allows firms to offer a specialized platform.
PwC says it was already using the new auditing tool to support audits for clients that are doing crypto-related businesses and assisting others for which it is not the auditor in implementing controls and processes necessary to receive assurance reports from their respective auditors. Stating that the tool may still have a few limitations, the firm stated:
“Our ability to audit an entity engaged in cryptocurrency activities is very much influenced by our client’s control environment, and at this stage, by the breadth of tokens supported by our Halo software. These considerations will be key when determining whether we are comfortable to accept an audit engagement.”
Last March, PwC’s main competitor Deloitte announced it was testing data management on the Ethereum blockchain with three Irish firms. KPMG is also heavily focused crypto auditing while Deloitte has focused on blockchain uses in finance.