Mark Li: auditors should “get comfortable” with digital assets existence

Aidan Brain, head of production at Terrapinn, has recently interviewed the Senior Manager from BPM LLP, a prosperous consulting and accounting company based in California. This company was even selected as a 2017 LendIt Industry Awards Finalist for Outstanding Achievement in Lending and FinTech, so the opinion of someone from this firm would be interesting to know.

Mark Li, the manager that Aidan Brain interviewed, is confident that the blockchain has a bright future as it will optimize transactions and facilitate accounting, but unlike many other blockchain supporters, he is also aware of the negative features of this technology. According to him, these are identification and authenticity. Unfortunately, he did not tell more about this.

“Alternative currencies”, as the interviewer called cryptocurrencies, pose high risks of fraud, theft and hacks, thinks Mr. Li, but he immediately noted that with proper regulation and “good sound professional judgement”, it is possible to work with them.

“Proper security measures are required to safeguard these digital assets. With that said, there are a few considerations all auditors should evaluate when working with companies holding cryptocurrencies. Auditors should get comfortable with the existence of the digital assets and valuation of these digital assets – whether these assets should be valued at cost or fair value, and where to obtain the fair value if fair value is required”, Mark Li explained.