Hester Pierce, commissioner of the United States Securities and Exchange (SEC), has raised concerns about the watchdog’s recent statement advising accounting firms against taking on non-audit work for crypto firms.
In a July 28 tweet, Pierce challenged the recent statement made by the SEC’s chief accountant Paul Munter. The statement suggested that accounting firms adopt an all-or-nothing approach to engagements with crypto firms, which Pierce believes could result in crypto firms refraining from making good-faith efforts due to fear.
While Pierce noted that crypto firms and accountants should ensure transparency regarding proof of reserves, specifying what is and isn’t acceptable, she questioned why accounting firms should be cautious of providing assurance work to crypto firms.
“Why would we want to discourage good-faith efforts to provide more transparency?” Pierce stated in a tweet.
Crypto platforms & their accountants should be clear about what proof of reserves is and isn’t & customers should understand the limitations, but why would we want to discourage good-faith efforts to provide more transparency? https://t.co/fsuxUGPrrb
— Hester Peirce (@HesterPeirce) July 27, 2023
Munter stated that partial engagements might result in crypto firms selectively choosing only certain aspects of the business to show accounting firms and then…
