AUDIT OF DIGITAL ASSET TRANSACTIONS: RISKS, APPROACHES AND TOOLS

Main Article Content

Volodymyr BUDNYK

Abstract

Introduction. The rapid digitalization of economic processes has fundamentally transformed financial and business activities, leading to the emergence of digital assets as new objects of accounting, control, and audit. The increasing use of cryptocurrencies and other digital assets in investment, payment, and operational activities has significantly expanded the risk landscape of financial reporting. Traditional audit approaches, developed primarily for tangible and conventional financial assets, are often inadequate for addressing the decentralized nature, technological complexity, legal uncertainty, and high volatility inherent in digital assets. These challenges necessitate the development of adapted audit methodologies capable of ensuring the reliability and transparency of financial information in a digital environment.


Purpose. The purpose of this study is to develop theoretical and methodological foundations and practical recommendations for assessing and managing audit risk in transactions involving digital assets within the context of the digital economy.


Methods. Comparative analysis was used to examine differences between traditional and digital assets, while a risk-oriented approach consistent with International Standards on Auditing was employed to assess inherent risk, control risk, and detection risk. Analytical synthesis supported the formulation of practical audit recommendations.


Results. The study identifies the key audit risks associated with digital asset transactions, including valuation uncertainty, difficulties in confirming ownership, insufficient internal controls over private keys, and limited availability of reliable audit evidence. It is substantiated that the risk of material misstatement related to digital assets is significantly higher than for traditional assets. The research demonstrates that the application of blockchain analytics and digital audit tools enables auditors to verify the existence, movement, and completeness of digital assets in real time, thereby reducing detection risk. A structured model of audit responses aligned with ISA requirements is proposed to mitigate identified risks.


Originality. The scientific novelty of the study lies in the systematization of audit risks specific to digital assets and the substantiation of integrated audit approaches that combine risk-oriented standards with blockchain-based analytical tools. The paper expands existing audit theory by adapting traditional risk models to the technological characteristics of digital assets.


Conclusion. The study concludes that effective auditing of digital asset transactions requires the integration of professional judgment, digital competencies, and advanced technological instruments. The author proposes enhancing internal control procedures over digital assets, increasing auditors’ technological expertise, and incorporating blockchain analytics into standard audit practices. These measures will improve audit quality, strengthen user confidence in financial reporting, and support the sustainable development of the auditing profession in the digital economy.

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