According to a recent warning by the U.S. Public Company Accounting Oversight Board (PCAOB), crypto proof-of-reserve (POR) audits have limitations, and the board believes that investors should exercise caution when dealing with companies using POR audits.
PCAOB Calls for Investor Caution and Due Diligence When Using Proof-of-Reserve Reports
The U.S. accounting watchdog recently issued an advisory warning about auditors using proof-of-reserve (POR) techniques to audit specific crypto companies, such as exchanges and stablecoin issuers. The Public Company Accounting Oversight Board (PCAOB) stated that it is aware of certain PCAOB-registered audit firms issuing POR reports for these types of businesses. The PCAOB expressed concerns that investors “may place undue reliance on POR reports.”
The reports are not within the PCAOB’s oversight authority, and the watchdog
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