Hello, I have a research paper due 04/12/2022 APA Format .This is the topic “CRYPTOCURENCY AND ITS IMPACT ON AUDITING “T.hepapers must be typed in Word, double-spaced using Times New Roman 12 pt....

Cryptocu
ency and its Impact on Auditing         4
CRYPTOCURENCY AND ITS IMPACT ON AUDITING
Table of Contents
Introduction    3
Research Questions    4
Analysis    4
IFRS Guidelines    6
Can auditors depend on historical transactions of cryptocu
ency?    7
Major issues faced by the auditors and the solution    8
Conclusion    9
References    10
Introduction
Cryptocu
ency is a digital form of cu
ency which is transacted virtually. Since the cu
ency is secured by cryptography, it becomes difficult for anyone to forge and does not let the users to double spend. Most of the cryptocu
ency technologies uses decentralized network which are based on blockchain technology. It is a form of technology where a distributed ledger is used based on an incongruent network of technologies. Further, one of the features of cryptocu
ency is that it is not issued by the central government of any country. Cryptocu
encies help to transfer money at faster and cheaper rates. The cryptocu
encies can be mined from the cryptocu
ency exchanges. But all ecommerce websites do not allow purchases through cryptocu
ency. The popular forms of cryptocu
ency are Bitcoin. But its due to the sky rocketing value of the cryptocu
ency which have made it a popular trading instrument (Frankenfield, 2022). Cryptocu
ency was invented by a group of programmers under the penname Satoshi Nakamoto in the year 2009 (Reiff, 2021). Further, it’s the blockchain technologies and cryptocu
ency which poses high risk for the finance and law industries. Also, due to price volatility, use in te
orist transactions and consumption in high energy sectors such as mining industries, cryptocu
encies are at a disadvantage. Hence it is due to these risks associated with the cryptocu
ency transactions which must be considered during client acceptance and retention as well as audit planning procedures. Further, there are various emerging issues which are related to the cryptocu
ency transaction and poses a major challenge for the auditors. Further, it’s the Public Company Accounting Oversight Board (PCAOB) which enforces auditing as a key area of focus on digital asset (PCAOB, 2018). Hence, it is essential to analyze the impact of cryptocu
ency on auditing.
Research Questions
The research questions which arise with respect to the impact of cryptocu
ency on auditing will be as follows:
1. What are the guidelines of IFRS for accounting and auditing with respect to cryptocu
ency?
2. Since the cryptocu
ency transactions are recorded automatically, the auditors can depend on the historical records?
3. What are the major issues faced by the auditors while conducting the audit of cryptocu
ency and how they can be resolved?
Analysis
American Institute of Certified Public Accountants (AICPA) reports states that the jurisdictions such as New York, Tennessee and Arizona have implemented legislation with respect to blockchain and cryptocu
encies. These records are with respect to record keeping, electronic signatures, smart agreements and authenticity with respect to blockchain transaction. Further, there are countries like Vermont, New Jersey and Hawaii which have issued legislation which supports the usage of cryptocu
encies. Also, it the AICPA which have launched the Blockchain training and learning program for enabling the practitioners for better understanding of this sophisticated virtual technology as well as determine the practical applications and its uses in the business. Further, it’s the Big Four auditing firms such as PWC, E&Y, Deloitte and KPMG in adherence to the AICPA policies with respect to cryptocu
encies are researching on the latest technology and investing in the resources. The Big Four are also designing various solutions which are beneficial for the accounting industries and may be beneficial for conception of distributed ledger consortium (Kokina et al., 2017). There are several risks which are associated with cryptocu
ency transaction which must be measured by the auditors. These risks arise during acquisition of new clients and the retention of the existing ones. There must be a well-defined cryptocu
ency framework which should be used for audit planning and for gathering of audit evidence which can be used for supporting the management assertions with respect to the financial statements. PWC is providing consultancy services to Cred which is an Indian financial technology company and provides reward-based credit card payment services to the customers with respect to the US dollar fixed...