BelowPaul Munter, the Chief Accountant of the US Securities and Exchange Commission (SEC), has sounded the alarm on accounting firms performing work for crypto firms, stressing the consequences that can follow deceptive public statements.
“Crypto firms may engage accountants to ‘perform some sort of review of certain parts of their business, often presented as a purported ‘audit’” – citing a risk of “material misstatements” listed under the Securities Exchange and Securities Acts of 1933, Munter offered – that those statements could lead to accounting firms being censor or even suspended.
For their part in this endeavor, Munter suggested that accounting firms ought to consider taking mitigating action regarding improper disclosure regarding client onboarding and suggested contractual prohibitions on certain language.
Other advice from the SEC Office of the Chief Accountant
