Cryptocurrency Risks and Controls

Course 4 of 6 in our Crypto Accounting Learning Path! As cryptocurrency becomes more common in business operations, CPAs are increasingly asked to assess risks, evaluate controls, and provide guidance in environments that differ significantly from traditional financial systems. Cryptocurrency operates on decentralized networks, relies on cryptographic keys for control, and processes transactions that are typically irreversible and continuously settled, creating unique custody, security, and valuation challenges.

This course examines cryptocurrency through a risk and control lens, focusing on how custody models, private key management, authorization processes, access controls, and governance practices impact internal control design, audits, and advisory engagements. It also explores common risk areas such as fraud, hacking, insider misuse, and valuation volatility, and discusses how these factors affect audit assertions, evidence, and professional judgment in crypto-related activities.