Accounting for cryptocurrencies is very confusing and US GAAP does not specifically address it and it is evolving daily.  New information is released either from accounting authorities or the government on how to account for digital assets.  For purposes of this homework, let's assume you are an internal auditor and you have been tasked with assessing the classification and accounting for cryptocurrencies that are held directly by the company you work for and the company is not an investment firm.  

You must first research the accounting for cryptocurrencies on the balance sheet to get an understanding of how it should be classified and how it should be valued.

 

 The working paper template from Audit Project:

W/P Reference:
Project Number:
Prepared By/Date:
Reviewed By/Date:
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WORK PROGRAM W/P REFERENCE FORM

Purpose: List the purpose of the working paper (From the Work Program)

 

 

 

 

Source: (Where was the information obtained from)

 

 

 

 

Procedure/Results of Work: (Describe how the audit procedure was conducted and what was found)

 

 

 

 

Conclusion:  (What is the overall conclusion based on the results of work) 

 

 

 

 

1. 1) Research the accounting for cryptocurrencies on the balance sheet to determine how to classify the asset and how to value the asset.
2. 2) Using the working paper template from Audit Project, document your research, making sure you list your sources and provide a link to the sources, and then conclude how the cryptocurrency should be classified and valued in the balance sheet? You do not have to complete the W/P reference in the right hand corner for this work.
3. 3) Make sure the results of work is thorough and includes concise but relevant information. 

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Step 1 Research the accounting for cryptocurrencies on the balance sheet Cryptocurrencies such as Bitcoin Ethereum and Litecoin are digital ... View the full answer