AUDIT OF CRYPTOCURRENCY TRANSACTIONS

Abstract

Every year, the cryptocurrency is more active in the global financial mar�ket, offering users more convenient and cheaper terms of payment. In addition, it allows
you to receive financial income, makes it more and more competitive in the electronic
money market. Over the past decade, it is cryptocurrency that has provided the largest
463
increase in the value of assets and the number of services for the population and busi�ness. Accordingly, both accounting and auditing are obliged to meet the challenges of
the modern economy. The use of cryptocurrency primarily influences the choice of audit
procedures. Since, along with traditional audit procedures, it is important to apply new
methods to reduce the risks of inaccurate currency valuation and identify possible fraud.
The procedures, along with the validation of reporting figures, should ensure that the
business is held accountable to the public for the veracity of transactions. While this is
more like cybersecurity, its assessment should also be a major part of the expert audit
process.
Our study summarized the theory and practice of auditing cryptocurrency
transactions, analyzed the main procedures and proposed our own audit sequence in
accordance with the International Standards for Quality Control, Auditing, Reviews, and
other assignments.
Auditors do not assess the state of cybersecurity, however, they use information, the
veracity of which is associated with the risks of unauthorized access to IT systems and
data. Therefore, for a cryptocurrency, the state and assessment of the IT system of an
enterprise has a direct impact on the indicators of financial statements

Full text

ИКОНОМИКАТА НА БЪЛГАРИЯ
И ЕВРОПЕЙСКИЯ СЪЮЗ:
ФИНАНСИ, СЧЕТОВОДСТВО, ФИНАНСОВ КОНТРОЛ
Колективна монография
София, 2022
УНИВЕРСИТЕТ ЗА НАЦИОНАЛНО И СВЕТОВНО СТОПАНСТВО – БЪЛГАРИЯ
ФИНАНСОВО-СЧЕТОВОДЕН ФАКУЛТЕТ
ВИСШЕ УЧИЛИЩЕ ПО ЗАСТРАХОВАНЕ И ФИНАНСИ – БЪЛГАРИЯ
ЛУЦКИЙ НАЦИОНАЛЬНЬІЙ ТЕХНИЧЕСКИЙ УНИВЕРСИТЕТ – УКРАИНА
ПОЛТАВСКИЙ УНИВЕРСИТЕТ ЭКОНОМИКИ И ТОРГОВЛИ – УКРАИНА
ФАКУЛТЕТ ПО ИКОНОМИКА НА УНИВЕРСИТЕТА НА ГР. СПЛИТ – Р ХЪРВАТСКА
ДЕПАРТАМЕНТ ПО МЕНИДЖМЪНТ НА УНИВЕРСИТЕТА НА ГР. БОЛОНЯ – ИТАЛИЯ
ТЕХНОЛОГИЧЕН УНИВЕРСИТЕТ НА ГР. ЛОДЗК – ПОЛША

Колективната монография се издава
с финансовата подкрепа на доц. д-р Емил Хърсев.
Научна редколегия: проф. д-р Румен Брусарски
проф. д-р Емил Асенов
проф. д-р Силвия Трифонова
проф. д-р Снежана Башева
проф. д-р Димитър Ненков
проф. д-р Огнян Симеонов
проф. д-р Румяна Пожаревска
доц. д-р Григорий Вазов
доц. д-р Михаил Мусов
доц. д-р Камелия Савова-Симеонова
доц. д-р Пресияна Ненкова
доц. д-р Даниела Петрова
Рецензенти: проф. д-р Богомил Манов
проф. д-р Стоян Стоянов
Всички права са запазени! Не се разрешават копиране, възпроизвеждане
и разпространение на книги или на части от тях по какъвто и да е начин
без писменото разрешение на Издателски комплекс – УНСС.
Издателският комплекс не носи отговорност за съдържанието
и стила на изложение на авторите.
© Колектив
© ИЗДАТЕЛСКИ КОМПЛЕКС – УНСС
Изп. директор: Веселин Ангелов, тел. 02 8195 251
Зам. изп. директор: Стефан Власев, тел. 02 8195 551
Гл. редактор: Тодорина Недева, тел. 02 8195 564
УНИВЕРСИТЕТ ЗА НАЦИОНАЛНО И СВЕТОВНО СТОПАНСТВО
1700 София, район „Студентски”, ул. „8-ми декември” № 19

3
СЪДЪРЖАНИЕ
ФИНАНСОВО ПОСРЕДНИЧЕСТВО И ФИНАНСОВИ ПАЗАРИ,
ФИНАНСОВ МЕНИДЖМЪНТ, ФИСКАЛНА ПОЛИТИКА ...................... 7
ВЪЗМОЖНОСТИ ЗА ОЦЕНЯВАНЕ НА СОЦИАЛНО-
ИКОНОМИЧЕСКОТО СЪСТОЯНИЕ НА ДЪРЖАВИТЕ
ОТ ЕВРОПЕЙСКИЯ СЪЮЗ
проф. Методи Христов .......................................................................................... 9
МЕХАНИЗЪМ ЗА ПРЕДУПРЕЖДЕНИЕ НА МАКРОИКОНО-
МИЧЕСКИ ДИСБАЛАНСИ В ЕС – КОНЦЕПТУАЛНА РАМКА
И ЛИТЕРАТУРЕН ПРЕГЛЕД ПО ПРОБЛЕМА ЗА ФИНАНСОВАТА
ДИСЦИПЛИНА И МАКРОИКОНОМИЧЕСКИТЕ ДИСБАЛАНСИ
В ЕС
проф. д-р Силвия Трифонова, хон. ас. д-р Валя Василева ................................. 34
ИЗМЕРЕНИЯ НА НЕРАВЕНСТВОТО В РАЗПРЕДЕЛЕНИЕТО
НА ДОХОДА В СТРАНИТЕ ОТ БАЛКАНСКИЯ РЕГИОН
доц. д-р Пресияна Ненкова ................................................................................... 64
ФАЗАТА НА ИЗПЛАЩАНЕ ПРИ УНИВЕРСАЛНИТЕ
ПЕНСИОННИ ФОНДОВЕ В БЪЛГАРИЯ
доц. д-р Станислав Димитров ............................................................................ 86
БАНКОВОТО КРЕДИТИРАНЕ В БЪЛГАРИЯ ОТ ГЛОБАЛНАТА
ФИНАНСОВА КРИЗА ДО COVID-19 КРИЗАТА
доц. д-р Гергана Михайлова-Борисова .............................................................. 104
ВЛИЯНИЕ НА НЯКОИ НЕТРАДИЦИОННИ ИЗТОЧНИЦИ
НА ДЪЛГОСРОЧНО ФИНАНСИРАНЕ ПРИ ОЦЕНКА
НА ПАЗАРНАТА СТОЙНОСТ НА НЕПУБЛИЧНИ КОМПАНИИ
В РЕАЛНИЯ БИЗНЕС
доц. д-р Евгени Райков .........................................................................................119
АНАЛИЗ НА ВЪЗВРАЩАЕМОСТТА В АВТОМОБИЛНИЯ
СЕКТОР В БЪЛГАРИЯ ЗА ПЕРИОДА 2017-2020 г.
гл.ас. д-р Иван Костов ........................................................................................ 137
РЕАКЦИЯ НА ЕВРОПЕЙСКАТА ЦЕНТРАЛНА БАНКА
НА КРИЗАТА, ПРИЧИНЕНА ОТ COVID-19
гл. ас. д-р Аглика Кънева .................................................................................... 157
КООРДИНАЦИЯ МЕЖДУ ФИСКАЛНАТА И ПАРИЧНАТА
ПОЛИТИКА В УСЛОВИЯТА НА КОВИД-19 КРИЗАТА
гл. ас. д-р Вениамин Тодоров .............................................................................. 173

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ИНВЕСТИЦИОННО ПОСРЕДНИЧЕСТВО
НА ВАЛУТНИ ПАЗАРИ – СИГУРНОСТ, ОГРАНИЧЕНИЯ,
РАЗВИТИЕ
д-р Пламен Иванов .............................................................................................. 193
СЧЕТОВОДНА ПОЛИТИКА, АНАЛИЗ И СТАНДАРТИЗАЦИЯ ....... 209
ЗАКОНОМЕРНОСТИ И ПРОБЛЕМИ НА СЪВРЕМЕННАТА
СЧЕТОВОДНА НОРМАТИВНА УРЕДБА НА Р БЪЛГАРИЯ
проф. д-р Румяна Пожаревска, проф. д-р Снежана Башева ..........................211
СЧЕТОВОДНИ АСПЕКТИ ПРИ ПРИЗНАВАНЕТО
И ОЦЕНЯВАНЕТО НА ПУБЛИЧНАТА ИНФРАСТРУКТУРА
проф. д-р Даниела Фесчиян, гл. ас. д-р Радка Андасарова .............................. 236
ПРЕДСТАВЯНЕ НА БИЗНЕС МОДЕЛА В ИНТЕГРИРАНИЯ
ОТЧЕТ – АНАЛИЗ НА ПРОМЕНИТЕ ОТ 2021 г.
проф. д-р Али Вейсел ........................................................................................... 248
ЗА НЯКОИ ОСОБЕНОСТИ ПРИ ТЕКУЩОТО СЧЕТОВОДНО
ОТЧИТАНЕ НА ДЪЛГОВИ ФИНАНСОВИ
ИНСТРУМЕНТИ КАТО ИНВЕСТИЦИОННИ НОСИТЕЛИ
проф. д-р Атанас Атанасов .............................................................................. 254
РЕТРОСПЕКЦИЯ НА МЕЖДУНАРОДНИТЕ СТАНДАРТИ
ЗА ФИНАНСОВО ОТЧИТАНЕ И ПРИЛАГАНЕТО ИМ
В БЪЛГАРИЯ
доц. д-р Камелия Савова ..................................................................................... 268
АНАЛИТИЧНИ АСПЕКТИ НА ВНОСА И ИЗНОСА НА СТОКИ
И ПОДХОДИ ЗА УСЪВЪРШЕНСТВАНЕ НА СЧЕТОВОДНО-
ИНФОРМАЦИОННОТО ИМ ОСИГУРЯВАНЕ
В СЪВРЕМЕННИТЕ УСЛОВИЯ
доц. д-р Диана Петрова ..................................................................................... 285
СТРАТЕГИЯ ЗА РАЗВИТИЕТО НА ФИНАНСОВО-
СТОПАНСКИЯ АНАЛИЗ
доц. д-р Росица Иванова ..................................................................................... 300
АКТУАЛНИ ПРОБЛЕМИ НА АНАЛИЗА НА ЛИКВИДНОСТТА
НА ПЕНСИОННИТЕ ФОНДОВЕ
доц. д-р Мая Начкова .......................................................................................... 321
„ТЕОРИЯ НА ОГРАНИЧЕНИЯТА” – ПРЕДИЗВИКАТЕЛСТВО
ПРЕД УПРАВЛЕНСКОТО СЧЕТОВОДСТВО
доц. д-р Теодора Рупска ...................................................................................... 336
РОЛЯ НА СЧЕТОВОДНИЯ АНАЛИЗ
В УПРАВЛЕНИЕТО НА БАНКИТЕ
доц. д-р Венцислав Вечев .................................................................................... 345

5
ПРЕДИЗВИКАТЕЛСТВА ПРЕД СЧЕТОВОДСTВОТО
В УСЛОВИЯТА НА COVID-19
гл. ас. д-р Илиян Христов ................................................................................... 355
КАЙЗЕН КОНЦЕПЦИЯТА КАТО ОСНОВА
ЗА СЪВРЕМЕННА БЮДЖЕТНА МЕТОДИКА
д-р Джеймс Йоловски ......................................................................................... 372
ЕФЕКТИ НА РЕГУЛИРАНЕТО И НОРМАТИВНОТО
РЕГЛАМЕНТИРАНЕ НА ЗАСТРАХОВАТЕЛНАТА ДЕЙНОСТ
ВЪРХУ СЧЕТОВОДНАТА СИСТЕМА
Надя Котева, докторант .................................................................................. 387
СИСТЕМИ ЗА УПРАВЛЕНСКИ КОНТРОЛ, ОДИТ,
ДАНЪЧЕН КОНТРОЛ ................................................................................405
ЗА НЕОБХОДИМОСТТА ОТ РАЗШИРЯВАНЕ НА ПРЕДМЕТА,
ПРАВОМОЩИЯТА И РОЛЯТА НА ПРЕЗИДЕНТА
В СИСТЕМАТА НА ДЪРЖАВНО УПРАВЛЕНИЕ
В РЕПУБЛИКА БЪЛГАРИЯ
проф. д-р Емил Асенов ....................................................................................... 407
ПРОБЛЕМИ НА ВРЪЗКАТА „СЧЕТОВОДНО ОТЧИТАНЕ –
ДАНЪЧНО ОБЛАГАНЕ” В КОНТЕКСТА НА МСФО 16 ЛИЗИНГ
доц. д-р Даниела Петрова ................................................................................. 432
ДОКЛАДВАНЕ НА НЕФИНАНСОВА ИНФОРМАЦИЯ –
ПРЕДЛОЖЕНИЯ НА ЕК ЗА ПРОМЯНА И ВЪЗМОЖНИ
ПРОБЛЕМИ НА ТРАНСПОНИРАНЕТО НА ДИРЕКТИВАТА
В Р БЪЛГАРИЯ
гл.ас д-р Явор Башев ........................................................................................... 454
AUDIT OF CRYPTOCURRENCY TRANSACTIONS
Zhurakovska, Iryna Volodymyrivna ...................................................................... 462

462
AUDIT OF CRYPTOCURRENCY TRANSACTIONS
Zhurakovska, Iryna Volodymyrivna
PhD in economy, lecture accounting and audit department
Department/Faculty, business and low
Lutsk national technical university
е-mail: zhurakovska@ukr.net
Thematic area; Systems for management control, audit, tax control.
Аннотация. Криптовалюта с каждым годом активнее занимает позиции на
мировом финансовом рынке, предлагая пользователям более удобные и дешёвые
условия расчетов. Кроме этого, она позволяет получать финансовые доходы,
что делает ее все более конкурентоспособной на рынке электронных денег. За
последнее десятилетие именно криптовалюта обеспечила наибольший прирост
стоимости активов и количество сервисов для населения и бизнеса. Соответ-
ственно, и учет, и аудит обязаны отвечать вызовам современной экономики. Ис-
пользование криптовалюты в первую очередь влияет на выбор процедур аудита.
Так как наряду с традиционными аудиторскими процедурами важно применять
новые методы для уменьшения рисков недостоверной оценки валюты и выявления
возможного мошенничества. Процедуры наряду с подтверждением показателей
отчетности должны обеспечить ответственность бизнеса перед обществом за
правдивость операций. Хотя это больше похоже на кибербезопасность, ее оценка
тоже должна составлять одну из основных частей процесса аудита с привлече-
нием экспертов.
В нашем исследовании обобщено теорию и практику аудита операций с крип-
товалютой, проанализировано основные процедуры и предложено собственную
последовательность аудита в соответствии с Международными стандартами
контроля качества, аудита, обзорных проверок, прочих заданий
Аудиторы не оценивают состояние кибербезопасности, однако используют
информацию, правдивость которой связана с рисками несанкционированного дос-
тупа к IT-системам и данным. Поэтому для криптовалюты состояние и оценка IT
системы предприятия имеет прямое влияние на показатели финансовых отчетов.
Ключевые слова: криптовалюта, аудит, аудиторские процедуры, учет
Abstract. Every year, the cryptocurrency is more active in the global nancial mar-
ket, oering users more convenient and cheaper terms of payment. In addition, it allows
you to receive nancial income, makes it more and more competitive in the electronic
money market. Over the past decade, it is cryptocurrency that has provided the largest

463
increase in the value of assets and the number of services for the population and busi-
ness. Accordingly, both accounting and auditing are obliged to meet the challenges of
the modern economy. The use of cryptocurrency primarily inuences the choice of audit
procedures. Since, along with traditional audit procedures, it is important to apply new
methods to reduce the risks of inaccurate currency valuation and identify possible fraud.
The procedures, along with the validation of reporting gures, should ensure that the
business is held accountable to the public for the veracity of transactions. While this is
more like cybersecurity, its assessment should also be a major part of the expert audit
process.
Our study summarized the theory and practice of auditing cryptocurrency
transactions, analyzed the main procedures and proposed our own audit sequence in
accordance with the International Standards for Quality Control, Auditing, Reviews, and
other assignments.
Auditors do not assess the state of cybersecurity, however, they use information, the
veracity of which is associated with the risks of unauthorized access to IT systems and
data. Therefore, for a cryptocurrency, the state and assessment of the IT system of an
enterprise has a direct impact on the indicators of nancial statements.
Keywords: cryptocurrency, audit, audit procedures, accounting
Introduction
Cryptocurrency is a new obgect of accounting and auditing research. Cryp-
tocurrency originated from innovations in the storage and transmission of data,
which is known as blockchain technology. The development of the cryptocur-
rency was aimed at creating a secure secured ability to conduct transactions and
payments. However, for the majority of consumers, cryptocurrency has not been
associated with a payment service for a long time. Investors expect to make a lot
of money out of cryptocurrency when they invest in buying it.
According to google trend, interest in bitcoin and cryptocurrency in the world
grew at a rapid pace between 2016 and 2020. The analysis was made for search
queries in Google. Figure 1 shows diagrams of the growth of requests in the pe-
riod 2004-2020 (1a) and 2016 - 2021 (1b).

464
Fig. 1. Dynamics of requests for bitcoin and cryptocurrency in Google
for 2004-2020 and 2016-2021
1а
1b
bitcoin
cryptocurrency
The nancial services market praised the benets of cryptocurrency, and so
did consumers, since the dynamics of value since 2014 indicate a signicant
increase in value, although not entirely stable. In g. 2 shows the dynamics of
growth in the value of currencies since 2014.
Fig. 2. Cryptocurrency rate according to https://coinmarketcap.com/currencies/bitcoin/

465
Ukraine is in the TOP-10 countries in the world in terms of the number of
Bitcoin users. However, it was only on September 8, 2021 that the Law of Ukraine
«On Virtual Assets» № 3637 was adopted, which recognized the cryptocurrency
as a «virtual asset». «A virtual asset is an intangible good that is an object of
civil rights, has a value and is expressed by a set of data in electronic form»
[1]. However, cryptocurrency is neither a means of payment on the territory of
Ukraine, nor an exchange. Licensing is being introduced for companies providing
translation, exchange, purchase and sale services. There is no infrastructure for
enacting the law. So far, there is only the concept of «virtual assets».
The interest in cryptocurrency is growing and more and more individuals and
legal entities of Ukraine own it, which means they expect protection of their
interests from the state. In our research, we analyze the possibilities of controlling
cryptocurrency transactions using audit in Ukraine. At the same time, the main
focus will be on the audit of nancial statements, which, according to the law, are
subject to mandatory verication by auditors.
We pay attention specically to the audit, which can become a «watchdog»
in operations with cryptocurrency to protect the interests of investors, business
owners, identify and report risks and contradictions.
The objectives of the research are: to analyze scientic developments in
the audit of cryptocurrency and to summarize proposals for the use of audit
procedures when checking the nancial statements of Ukrainian enterprises in
terms of transactions with cryptocurrency.
Discussion of relevant literature
Despite the fact that cryptocurrency has emerged relatively recently, a sufcient
number of foreign and Ukrainian researchers have been studying it. Mamumenko
M.S. [2] and Zhmai A.[2]. The disclosed the use of cryptocurrency in a modern
market economy in Ukraine, focusing on its advantages and disadvantages. Mandrik
V.A. [3], Moroz V.P.[3] investigated the legislative regulation of the circulation of
cryptocurrencies in Ukraine, in particular, the NBU’s opinion on this aspect and
answered the question why permission to issue cryptocurrencies is not yet possible
in Ukraine. Mazur V.I.[4] and Ivankevich A.V. [4] and other identied the features
of the use of cryptocurrency in the world and in Ukraine etc.
Mircea Constantin Scheau [5], Simona Liliana Crăciunescu [5], Iulia Brici [5],
Monica Violeta Achim [5], Yilmaz, K. N. [6], Hazar, B. H. [6] and others have
studied cryptocurrency in relation to foreign scientists. Andrew Hartley [7] in
his work spoke about the opinions and research of the Big Four (the four largest
audit rms in the world). An extremely unusual and interesting study of the level
of deepening and classication of cryptocurrency and tax transactions in Kenya
was carried out by Nelly Mirity [8] and Marion Nekesa [8]. Feras Shehada [9]

466
and Mohanad Shehada [9] investigated hypotheses to explain the problem facing
IFRS for accounting for cryptocurrencies.
Explanation of the method
The research is based on the practice of the audit companies of the «big four»
in those countries that legalized the use of cryptocurrency in the earlier periods
from 2006 to 2020. In Ukraine, there is no such experience yet, therefore, the
study used the results of disclosing the cryptocurrencies of the countries of
America, Europe, Asia in the reporting in accordance with IFRS and GAAP.
The source of information for the factual data were analytical reports, articles
by the experts of the audit companies posted on the ofcial websites of the
companies. The theoretical developments of scientists were analyzed for the
possibility of adapting the research results in accordance with the legislation
of Ukraine. In Ukraine, IFRS has been implemented at the legislative level,
therefore, the main emphasis was placed on the experience of countries in which
IFRS has been implemented
Description of research results
Back in 2014, the National Bank of Ukraine (NBU) published a letter on the
legality of using the virtual currency bitcoin in Ukraine, in which it proposed
treating bitcoin as a monetary surrogate that has no real value. He also noted
that the use of a «monetary surrogate» as a means of payment is prohibited,
since it is contrary to the legislation of Ukraine. However, in 2018, the letter was
deemed irrelevant. This decision was supported by a large number of people, as
it indicated a positive shift in the consciousness of the NBU leadership regarding
the understanding of the nature of cryptocurrencies.
Today Ukraine has a huge potential in the eld of cryptocurrencies. There are
released their own cryptocurrency called Karbowanec. It was launched on May
30, 2016 and is showing pretty good results. The authoritative publication about
cryptocurrencies BitcoinNews - claims that Karbowanec runs on the CryptoNote
protocol and is one of the few world currencies that allows completely anonymous
and untraceable transactions.
By starting to use new digital monetary mechanisms such as cryptocurrencies,
businesses are realizing that these transactions carry nancial risks. And for users
of nancial statements of enterprises that own cryptocurrencies, the opinion
of auditors regarding the indicators in it can become decisive when making
investment decisions.
What risks need to be considered during the audit? Firstly, the cryptocurrency
has a changing value, the dynamics of the value is close to uctuations in the

467
prices of traditional nancial assets. Secondly, the value of the cryptocurrency
is not tied to the bank, most types of cryptocurrency are decentralized. This
means that currency transactions do not depend on banks, government agencies.
Thirdly, transactions can be anonymous, because, unlike classical electronic
money, it is impossible to obtain information about the owner of a cryptocurrency
wallet. Only the wallet number and limited data on the amount on the account
are available. Fourth, cryptocurrency accounting is unregulated. The Big Four
audit rms PricewaterhouseCoopers (PwC), Ernst & Young (EY), Deloitte and
Klynveld Peat Marwick Goerdeler (KPMG) provide the following guidelines for
accounting for cryptocurrencies
Table 1. Cryptocurrency accounting proposals
PwC
PwC believes that the classication of „intangibles” is the best option for
cryptocurrency. According to them, ”cryptocurrency is not cash, currency
or nancial asset; most likely, it should be accounted for as an indenitely
durable intangible asset
EY
According to EY, the cryptocurrency is so new and technically advanced that
the classication should be left on a case-by-case basis. EY does not express
an opinion of its own, but only relies on guidance from other regulatory
agencies outside of the United States.
Deloitte
According to Deloitte, companies must report cryptocurrency based on their
intent. For example, if you mine a cryptocurrency with the full intention of
selling it for a prot later, it looks like stocks
KPMG
According to KPMG, cryptocurrency is generally an intangible asset. But the
only way to classify cryptocurrency as inventory is to hold it for sale during
business as usual.
Source: compiled according to [1].
Therefore, depending on the cryptocurrency, its type, various accounting
options are possible, which must be taken into account and veried by the auditor.
In accordance with the requirements of the International Standards on Auditing,
to audit cryptocurrency transactions, it is necessary to clearly understand the
purpose of the audit. In our study, we focus on the methodology for auditing
cryptocurrency in accordance with ISA 200 «Overall Objectives of the Indepen-
dent Auditor and the Conduct of an Audit in Accordance with International Stan-
dards on Auditing», which is the expression by the auditor of an independent
professional opinion regarding the correctness of the reection of information
about cryptocurrency in the company’s statements.
Based on the goal, the main objectives of the audit of cryptocurrency are:
1) control over compliance with the current legislation on transactions with

468
cryptocurrency; 2) checking the security of operations with cryptocurrency
(email, access to electronic wallets); 3) verication of the correctness of the
recognition of the cryptocurrency, its assessment and revaluation; 4) checking
the actual availability of cryptocurrency;
In table 1, we have summarized the main objects of cryptocurrency’s audit
Table 1. The main objects of cryptocurrency’s audit
Object Object essence
Transactions with
cryptocurrency
In Ukraine, it is allowed to buy and sell cryptocurrency.
Therefore, it is necessary to study the legality of operations,
their reality
Digital Wallets
Each digital wallet has a unique wallet identier (ID), which
is a string of 36 letters and numbers similar to the user‘s name.
In addition to the type of cryptocurrency, they are recorded for
each digital wallet. It is necessary to check with the help of
access codes whether these wallets really belong to the company,
registered to a legal entity, protected email address, etc.
Accounting policy
Accounting for cryptocurrencies in different countries is carried
out as part of «intangible assets», «securities». Therefore, the
analysis of accounting policies will allow you to determine the
object in the accounting
The objects of cryptocurrency audit are transactions with cryptocurrency,
digital wallets of various types, the accounting policy of the company. Guided by
the ISA standards, the following audit procedures can be determined that must be
applied when auditing cryptocurrency:
- Conrm registration of bitcoin wallets to a legal entity (company email).
- Verication of the control system of wallet accesshas (who owns the data
on the wallet identier, password, access to a registered letter, password recovery,
transaction authorization, etc.).
- Verication of registration conrmation on bitcoin or cryptocurrency storage
sites or exchange platform.
- Verication of ownership of cryptocurrency for a certain period. You can get
a screenshot of the wallet ID printing for several different dates.
- Conrmation of control over the digital wallet. This can be done by the
presence of an auditor during the minimal transaction.
Some of these procedures require IT professional knowledge, namely data
and information protection. Therefore, in operations with cryptocurrency, the
requirements of ISA 620 «Using the work of an auditor’s expert» are used. At
the same time, the auditor must agree in writing the main tasks of the expert in
assessing data protection systems, information, access to electronic wallets.

469
So auditing a cryptocurrency is not an easy process, as the object is not clearly
dened. The legal recognition of a cryptocurrency as a virtual asset provides for
its accounting both as part of intangible assets and securities. Auditors should
consider the level of information security when assessing audit risk. Since there is
a high risk of unauthorized access to IT systems and data related to cryptocurrency,
there is a signicant risk of miscalculation of value.
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ИКОНОМИКАТА НА БЪЛГАРИЯ И ЕВРОПЕЙСКИЯ СЪЮЗ:
ФИНАНСИ, СЧЕТОВОДСТВО, ФИНАНСОВ КОНТРОЛ
Рецензенти: проф. д-р Богомил Борисов Манов
проф. д-р Стоян Димитров Стоянов
Предпечатна подготовка: Емилия Лозанова
Дадена за печат: 02.03.2022 г.
Формат 16/70/100; ПК 29.5
ISBN 978-619-232-591-6
ИЗДАТЕЛСКИ КОМПЛЕКС – УНСС