Cryptoasset Auditing and Attestation: What's Changed and Why it Matters
By Sean Stein Smith, CPA, DBA, CMA, CGMA, CFE, City University of New York – Lehman College –
September 2, 2025
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Digital assets aren’t a fad — they’re now firmly part of the financial landscape. For accounting professionals, staying ahead means not only understanding the latest rules, but also clearly guiding clients through them. Here’s what they need to know.
FASB ASU 2023 08 and the AICPA Practice Aid
The Financial Accounting Standards Board (FASB)’s Accounting Standards Update (ASU) 2023 08, effective Dec. 15, 2024, now classifies crypto as intangible assets with indefinite lives under U.S. GAAP (ASC 350 60). That means reporting these assets at fair value with gains or losses flowing into net income — and full transparency on disclosures like holdings, valuation methods and restrictions.
Alongside that, the American Institute of CPAs (AICPA) revamped their Digital Assets Practice Aid in January 2025. It’s cleaner, smarter and loaded with practical Q&As, covering everything from “wrapped” tokens and non-fungible tokens (NFTs) to how transaction costs factor into fair value. Plus, it includes additional clarification pertaining to existence, valuation, rights and obligations with clear alignment to AICPA Statements on Auditing Standards (SAS) 143 and 145.
Quick take: Make sure you’re asking clients whether their crypto has been correctly classified under ASC 350 60, especially since missteps here can lead to big mistakes in reporting. Be sure to validate the following:
- Existence: Confirm blockchain balances via explorers, inspect hardware wallets, verify custody and obtain third-party confirmations.
- Valuation: Ensure fair-value measurement in principal markets, track pricing sources, evaluate impairments and ensure correct fair-value hierarchy classifications.
- Ownership and rights: Validate control over private keys, custody terms and legal rights via reviewed agreements.
- Cybersecurity: Scale up scrutiny of internal custodial controls, multi-signature arrangements and potentially service organizational control (SOC) modifications for outsourced services.
If your audit tools and control templates aren’t crypto-smart, they need an upgrade. Collaborate with cybersecurity pros and ensure your documentation aligns with modern expectations.
The New ERA of Stablecoin Attestation
March 2025 brought something big: the AICPA’s Criteria for Stablecoin Reporting — and the market’s taking note. Though voluntary, the following guidelines are quickly becoming the expected norm:
- Confirm the number of tokens outstanding, with clear tracking of redeemed or burned coins.
- Detail the fiat or equivalent assets backing each token.
- Provide reconciliations proving that backing assets exceed circulating tokens, including disclosure of any excluded portions.
Phase two — focused on controls — is on the horizon later this year.
What your firm can do now: Build out stablecoin attestation services. Early visibility into the upcoming controls guidance will put you ahead of the pack.
Regulation and Oversight Pulse-Check
Crypto lives in an ever-shifting regulatory landscape. Key developments to track include the following:
- The Center for Audit Quality (CAQ)/Securities and Exchange Commission (SEC) issued alerts in the spring that spotlighted asset audit deficiencies. A signal: update audit-estimate procedures, especially for crypto.
- The SEC Crypto Task Force is inviting CPA voices — AICPA even submitted comment letters — indicating growing practitioner influence in rulemaking.
- Global regulators are speeding up stablecoin audit expectations and oversight internationally. If your clients have cross-border exposure, this matters.
Crafting Your Crypto Playbook
To stay competitive, firms should focus on these five pillars:
- Audit frameworks: Integrate enhanced existence, valuation, ownership and cybersecurity checks into your audit programs.
- Attestation capabilities: Build your stablecoin attestation team for today — and for the phase two audit criteria coming soon.
- Training programs: Educate your staff on ASC 350 60, Practice Aid update, and practical blockchain evidence techniques.
- Client advisory tools: Guide clients in strengthening their accounting and governance models to meet new GAAP and attestation standards.
- Regulatory intelligence: Stay plugged into market changes (e.g., PCAOB inspections, SEC moves, global developments) to advise clients with foresight.
This year is turning into a landmark year for crypto, and CPAs who act now will define the future of audit and assurance in digital finance.
 | Sean D. Stein SmithDr. Sean Stein Smith, CPA, DBA, CMA, CGMA, CFE, is an associate professor at the City University of New York – Lehman College. He is a member of the NJCPA Board of Trustees, a New Jersey CPA Political Action Committee Trustee and participates on several interest groups. More content by Sean D. Stein Smith: Learn more from Sean D. Stein Smith: |