Cloudoffis announces enhancement to strengthen crypto auditing

As crypto adoption continues to grow within SMSFs, Cloudoffis said these assets present distinct audit challenges, including verifying ownership, validating wallets, assessing valuations and tracing transactions. 

Historically, crypto assets within Auditomation have been grouped alongside other investment categories, making them less visible during audit planning and increasing the risk that crypto-specific considerations or evidence requirements are missed.

Cloudoffis chief strategy officer John Munden said the enhancement is designed to help audit firms respond to an increasingly complex investment landscape while maintaining rigorous and consistent audit processes.

“Crypto assets require a different level of scrutiny than many traditional investments, and auditors need workflows that reflect that,” Munden said.

“By giving crypto its own dedicated asset class within Auditomation, we’re making these investments more visible throughout the audit process and helping firms ensure the right procedures are applied consistently across every engagement.”

The new functionality enables auditors to maintain a dedicated crypto audit checklist, helping standardise procedures and evidence requirements across engagements.

Separating crypto from other investments also allows firms to assess materiality and audit risk for the asset class independently, supporting more effective audit planning and resource allocation.

“Visibility at the planning stage is critical. When an asset presents unique risks, auditors need to be able to identify that early and plan their approach accordingly,” Munden said.

“This update helps reduce the risk of crypto-specific procedures being overlooked, while giving firms a more structured and consistent framework for auditing an asset class that is becoming increasingly relevant to SMSFs.”

The enhancement forms part of Cloudoffis’ continued investment in Auditomation as a fully connected audit platform, using technology and automation to improve audit quality, standardise workflows and help firms manage increasingly complex compliance requirements.

“As the assets held within SMSFs evolve, audit technology needs to evolve with them,” Munden said.

“Our focus is on giving auditors practical tools that make complex areas easier to manage without compromising the professional judgement at the heart of a quality audit. Treating crypto as a distinct asset class is a simple but important step towards making those audits more robust, consistent and efficient.”