Risk assessment and response of Cryptocurrency in Holder Perspectives

Abstract

This study aims to analyze perspectives of auditors and audit assistants regarding risk assessments and risk responses of auditing in cryptocurrency – holder perspectives. This is also to identify factors affecting significant audit plans. A questionnaire survey is used as data collection tool. Both descriptive statistics (mean, minimum, maximum) and inferential statistics (Mann-Whitney U test and Kruskal-Wallis One-Way analysis of variance test) are employed in the analysis.

The results show that the respondents are more likely to emphasize on test of controls than risk identification and assessment and substantive tests. The respondents prefer the testing of operating effectiveness over internal approval of cryptocurrency transactions and testing of operating effectiveness over the internal control related to private keys, while respondents underweight of checking the list of approved counterparties and pay less attention to the transactions involving cryptocurrency with non-approved counterparties. Furthermore, the study finds that, at a 0.05 significant level, the analysis reveals factors influencing audit programs in verifying cryptocurrency holders, including educational level, experience in auditing, types of audit firms, current position, and number of companies in portfolios. This study is useful to auditors who develop audit plans for auditing cryptocurrency in holder perspectives.