Step-by-Step Guide to the Crypto Audit Process and Frameworks
What is the objective of a crypto audit under VARA? The objective is to provide independent assurance that a virtual asset service provider (VASP) complies with VARA license conditions and applicable laws — covering governance, AML/CFT , custody, operational resilience, information security, transaction integrity, and reporting. The audit should identify control gaps, test operating effectiveness, and produce actionable remediation recommendations mapped to VARA expectations. What types of audits and frameworks are relevant for crypto firms? Key audit types and frameworks include: Internal audits: ongoing assurance performed by the firm’s own auditors to prepare for inspections. External/independent assurance: engagement by an independent auditor or licensed CPA (e.g., SOC 1/SOC 2 attestations). Technical audits: smart contract audits, penetration testing, and key-management reviews. Compliance audits: AML/CFT program effectiveness and KYC processes. Frameworks ...