Yesterday PwC announced the launch of new software enabling them to provide cryptocurrency audit services.
The software works for Bitcoin, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, LiteCoin, Ethereum, ERC20 – OAX token, and Ripple (XRP). The software is already up and running with clients.
PwC will also provide advice to organizations working with cryptocurrencies re preparing for future audits from third-party auditors.
The software was developed in conjunction with blockchain experts. It has been incorporated into PwC’s existing data-auditing technology, Halo. The decision to accept an audit engagement may be influenced by whether any cryptocurrencies used are compatible with the Halo tool.
The new Halo software seeks to address two main challenges associated with auditing cryptocurrency activities. First is verifying the ownership of the cryptocurrency. This is achieved by checking the company’s wallet address and private key pair up.
Second is checking the blockchain transactions by going through the ledger.
PwC is not the first auditor to provide cryptocurrency-focused auditing. Indeed, EY announced last year that they were introducing EY Blockchain Analyzer, a set of tools enabling them to audit organizations engaging with cryptocurrencies.
With organizations incorporating new technologies such as blockchain, audit firms have recognized the need to adapt their services. PwC Global Assurance Leader James Chalmers says that auditors must “continue to develop audit tools that meet the needs of emerging technologies”.