The US Securities and Exchange Commission (SEC) has issued a dire warning to accounting firms conducting audits in the crypto asset space.
In a statement released on July 27, SEC Chief Accountant Paul Munter expressed concerns about the potential for misleading information to be presented to investors through non-audit work, which he argued is not as rigorous or comprehensive as a financial statement audit.
Munter warned accounting firms of the potential for legal liability if their clients make misleading statements about the nature of their services, which could lead to potential anti-fraud violations under federal securities laws.
SEC Warns Accounting Firms Of Hazards In Crypto Industry
The statement highlighted the hazards associated with accounting firms’ increasing engagement in non-audit service work for crypto asset clients, particularly in light of recent waves of scandal and insolvency in the crypto industry.
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