SEC's Chief Accountant Flags Crypto "Assurance" Work

On July 27, Paul Munter, the Chief Accountant of the U.S. Securities and Exchange Commission (SEC), published "The Potential Pitfalls of Purported Crypto 'Assurance' Work." Munter addressed accounting firms' obligations when performing non-audit work for crypto companies – especially, crypto asset trading platforms – which he says is a particular concern in the wake of recent crypto scandals and accounting firms' "vital gatekeeper role."

First, accounting firms and crypto clients should be careful when describing the non-audit work being provided by the firm and avoid giving investors the mistaken belief that such work is comparable to or more precise than financial statement audits. The SEC will be looking closely at representations about accounting firms' non-audit work for antifraud violations, including primary and secondary violations by the accounting firms and their employees, and accounting firms should consider a noisy withdrawal and reporting to the