EY is making us report our cryptocurrencies and holdings in venmo accounts. Wtf? 🤨

likesmart
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Pwc has been doing this for a few years now. It’s wealth just like any stock holding that could potentially compromise your independence. What’s surprising about that?

likesmart

Venmo? Is that in the checklist or somewhere else?

like

Correct me if I’m wrong.. difference is you report holdings in companies that could potentially affect your audit independence. On the other hand, nobody audits crypto currency and an average individual has zero to no impact on crypto values. So why would EY need to know these facts? They might as well ask us to report the amounts in our savings accounts

smart

Many crypto currencies allow you to keep your wallet on some provider’s server so in effect it’s like an uninsured bank account. If you audit that company, you could have a motivation to make their financials look better than they are to avoid losing your balance (even if only in appearance and not fact).

Same thing with Venmo/PayPal. It’s effectively a bank account without FDIC insurance, so if you audit the company the public may see a conflict of interest.

helpful

What do you mean "holdings in venmo accounts"?

Maybe auditing their Venmo accounts?

EY independence needs to be completely rationalized to market

Fair enough, then in that case you should report crypto in the particular wallets, not cold storage etc.

We need to keep it simple so we’re just saying report the currencies and the platform. Report the platform in deposits with a comment noting the currencies held or create a “Matter to be Reported.”

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