US accounting watchdog warns investors about proof-of-reserves reports

US accounting watchdog warns investors about proof-of-reserves reports

The Public Company Accounting Oversight Board (PCAOB) — a watchdog that oversees audits of public companies in the United States — recently issued an advisory that warned investors about proof-of-reserves (PoR) reports issued by auditing firms.

Crypto entities may engage a service provider to issue “proof of reserve” reports. A new Investor Advisory from the PCAOB’s Office of the Investor Advocate urges investors to exercise caution with these reports. #PCAOBresources

— PCAOB_News (@PCAOB_News) March 8, 2023

The PCAOB, backed by the U.S. Securities and Exchange Commission (SEC), pointed out that investors should not “place undue reliance” on PoR reports, which are not within the board’s oversight authority. The advisory wrote: 

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“Importantly, investors should note that PoR engagements are not audits and, consequently, the related reports do not provide

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