Cryptocurrency Risks and Controls
This course examines the unique risks and control challenges associated with cryptocurrency. Participants will explore how custody models, private key management, transaction irreversibility, and valuation volatility impact internal controls, audits, and advisory engagements, with a focus on applying professional judgment in crypto environments.
Course Description
Course 4 of 6 in our Crypto Accounting Learning Path! As cryptocurrency becomes more common in business operations, CPAs are increasingly asked to assess risks, evaluate controls, and provide guidance in environments that differ significantly from traditional financial systems. Cryptocurrency operates on decentralized networks, relies on cryptographic keys for control, and processes transactions that are typically irreversible and continuously settled, creating unique custody, security, and valuation challenges.
This course examines cryptocurrency through a risk and control lens, focusing on how custody models, private key management, authorization processes, access controls, and governance practices impact internal control design, audits, and advisory engagements. It also explores common risk areas such as fraud, hacking, insider misuse, and valuation volatility, and discusses how these factors affect audit assertions, evidence, and professional judgment in crypto-related activities.
In this course, you'll learn...
Course Objectives
To identify key risks associated with holding and transacting in cryptocurrency.
To distinguish between custody models and their control implications.
To evaluate internal controls over cryptocurrency transactions and storage.
To recognize audit and advisory considerations related to cryptocurrency.
How you'll apply these skills...
Identify Crypto Risks: Recognize key risks related to private keys, irreversible transactions, fraud, and valuation volatility
Evaluate Custody Models: Assess how hot wallets, cold storage, exchanges, and custodians impact control and risk exposure
Design Effective Controls: Apply authorization, access control, and segregation of duties concepts in crypto environments
Assess Audit Implications: Evaluate how cryptocurrency affects existence, rights, valuation, and audit evidence
Advise on Governance: Support policy development, documentation, and risk management for crypto-related activities
Course Instructor
Michael Carroll, CPA, CISA, CISM
Michael is an accounting and information security professional. He is also an Adjunct Professor at several higher education institutions, where he is responsible for teaching various accounting and information technology courses.
Michael earned his MBA in Accounting and B.S. in Accounting / Accounting Information Systems from Canisius University. Additionally, Michael is a Certified Public Accountant (CPA) and a Certified Information Systems Security Professional (CISSP). Michael is a current member of the NYCPA’s Education Committee and has been an Advisory Board Member for the Academy of Finance (AOF) since 2020.
Michael enjoys traveling, hiking, and watching the Buffalo Bills. He has also participated in several marathon events.
Course Content
Additional Info
Format
5-20 min. videos, 3 quizzes, and a final assessment
Field of study
Specialized Knowledge
CPE Credits
CPEs 3.5
Prerequisites
Completion of prior courses in Wisdify’s Crypto Accounting Learning Path is recommended.