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Auditing Services for Financial Statements related to Digital Assets and Cryptocurrencies

AOGB consists of Certified Public Accountants, Certified Financial Analyst, Certified Cryptocurrency Auditor™; Certified NFT Expert™ and Certified Blockchain & Finance Professional™, etc. We are auditors, CPAs, accountants, valuation and blockchain experts which allow us to provide a comprehensive auditing services on digital assets like cryptocurrencies and digital tokens. We are one of the few firms in the market which are equipped with specific valuation technique and digital assets accounting expertise to assist you in providing auditing services with real understanding on the scope of work.

 

We offer a full range of auditing services related to Digital Assets including and not limited to classic statutory audit, audit of funds, audit at consolidation level and audit of public listed company.

 

Key auditing services scope but not limited to:

  • Assessing the integrity and business substance of the corporations which involve Digital Assets related business;

  • Obtaining an understanding of the entity's information system for cryptocurrency transactions and exchanges;

  • Identifying and assessing risks of material misstatements in financial statements related to cryptocurrency transactions and cryptocurrency balances;

  • Confirming the custody of digital assets;

  • Assessing the accounting classification of digital assets;

  • Verifying the valuation of different cryptocurrencies or value of tokens/digital assets;

  • Liabilities resulting from agreements to pay amounts owing using a cryptocurrency;

  • Controls related to the infrastructure supporting a blockchain technology, such as the hardware and software used in operating a node.

AOGB consists of Certified Public Accountants, Certified Financial Analyst, Certified Cryptocurrency Auditor™; Certified NFT Expert™ and Certified Blockchain & Finance Professional™, etc. We are auditors, CPAs, accountants, valuation and blockchain experts which allow us to provide a comprehensive auditing services on digital assets like cryptocurrencies and digital tokens. We are one of the few firms in the market which are equipped with specific valuation technique and digital assets accounting expertise to assist you in providing auditing services with real understanding on the scope of work.

Accounting firms around the globe have been trying to assess possible classifications of Digital Assets under accounting standards. Major players in the industry have been directing their assessment mainly under the General Accepted Accounting Principles (the “US GAAP “) and the International Financial Reporting Standards (the “IFRS”) to which respectively reporting practices are set by the Financial Accounting Standards Board (the “FASB“) and by the International Accounting Standards Board (the “IASB “) respectively.

Digital Assets have diverse terms and conditions, and the purpose for holding them also differs among holders. Hence, holders of a crypto-asset will need to evaluate their own facts and circumstances in order to determine which accounting classification and measurement under current IFRS should be applied. Such determination and assessment should serve the purpose to rule out accounting classification under which might get a wrong classification.

 

In relation to the statements above we offer a full range of accounting services related to Digital Assets including and not limited to:

 

  • Bookkeeping with a “know how” approach to the classification under your business model;

  • Accounting review of bookkeeping registrations and preparation of final Management Report/Financial Statements;

  • Accounting integration of the Digital Assets entry/elements into the already prepared Management Report and/or Financial Statements;

  • Accounting management and/or internal control on the Digital Assets;

  • Assessment of tax implication related to the entries of Digital Assets.

Tax Services for Financial Statements and Corporate Structures related to Digital Assets and Cryptocurrencies

AOGB consists of Certified Public Accountants, Tax Advisors, Certified Financial Analyst, Certified Cryptocurrency Auditor™, Certified NFT Expert™ and Certified Blockchain & Finance Professional™, etc. We are auditors, CPAs, accountants, valuation and blockchain experts which allow us to provide a comprehensive auditing services on digital assets like cryptocurrencies and digital tokens. We are one of the few firms in the market which are equipped with specific valuation technique and digital assets accounting expertise to assist you in providing auditing services with real understanding on the scope of work.

Taxation is one of key considerations when transacting digital assets.  Management should take into consideration of the potential tax costs on any transactions related to digital assets.  In some countries whereby tax rules treat Digital Assets as ordinary property, buying and selling cryptocurrencies to realize a gain may be subject to capital gain tax.  Some countries may treat the digital assets as payment of currencies or personal wealth and the gain may be assessed like appreciation of the currencies/private assets and subject to other types of taxes instead of the capital gain tax.

 

We offer a full range of tax advisory services related to Digital Assets including and not limited to:

 

  • Tax assessment of registration of Digital Assets in the financial statements;

  • Preliminary Tax Computation of the Tax Base included of Digital Assets;

  • Tax advisory on Tax Restructuring of Digital Assets related companies or group;

  • Tax Filing for Hong Kong, USA, Japan and Australia (jurisdiction open to Digital Assets).

Digital Assets Valuation Services

AOGB consists of Certified Public Accountants, Certified Financial Analyst, Certified Cryptocurrency Auditor™; Certified NFT Expert™ and Certified Blockchain & Finance Professional™, etc. We are valuation and blockchain experts which allow us to provide comprehensive valuation services on digital assets like cryptocurrencies and digital tokens. We are one of the few firms in the market which are equipped with these specific valuation technique to serve your demand.

 

We offer a full range of intellectual property and business valuation services in the context of M&A transactions, spinoffs and fundraising across a wide range of industries and technologies.

 

Valuation service scope that you may need:

 

  • Tokens upon Initial Coin Offerings (“ICO”s)

  • Tokens with different trading volume or activeness of market

  • Simple agreements for Future Tokens (“SAFT”s) entered between cryptocurrency developers and their accredited investors.

  • Non-fungible tokens (“NFT”s)

  • Private funds consisting of digital assets

  • Investments on crypto-related projects

 

Some valuation approaches that we may use:

 

  • Opportunity cost approach

  • Mining cost approach

  • Income approach

  • Market approach

  • Cost of development approach

IT & Code Audit of your smart contract and blockchain code

AOGB consists of Certified Public Accountants, Certified Financial Analyst, Certified Cryptocurrency Auditor™; Certified NFT Expert™ and Certified Blockchain & Finance Professional™, etc. We conduct audits across major protocols. We partner with The Coding Machine, a France-based technology company, and formed a trusted alliance as the recommended blockchain and smart contract audit provider.

 

We would conduct vulnerability inspection on the source code and we suggest remediation and deliver our report. Our audit reports are customised for your case. The report will contain the details of any identified issues categorising with risk level (Low, Medium, High), and we would include our corresponding suggested remediations.

 

Process for the audit:

 

1. Clients send us the code and documentation to evaluate its length, complexity, viability, and purpose. We would provide clients with a quotation once the preliminary assessment is done. If the client agrees to the terms, we send a formal proposal entailing all the details of the audit, price, terms, and payment.

 

2. We go through the smart contract code for verification and making sure it matches with the documentation provided by the customer. We would provide clients with a draft report to highlight main problems found prior to the issuance of the final report.

 

3. Our final report includes a detailed summary of the audit process. The report includes the audit procedures performed and describes the issues found in the contract including severity level. We would highlight all key findings and propose improvements accordingly.

Private Key Management Advisory Service

AOGB has partnered with Custonomy Company Limited, an award-winning company of blockchain, currency and crypto-asset exchange providers, to provide an institutional grade crypto-asset key management solution secured by state-of-art cryptography with granular access control mathematically built in.

 

Our client would be offered with enterprise key management solution which can improve the enterprise’s digital asset security and enable the enterprise to innovate with value-added customer services and keep pace with rapid technical changes.

 

The scope of service covered:

 

  • Embed hierarchical threshold signature scheme, allowing ultra-secure transaction signing with mathematically enforced granular access control.

  • Secure assets within client’s own premises or go hardwareless, with the Advanced Policy Engine designed to meet emerging institutional and regulatory demands.

  • Provide a wallet that can support new and future assets. The wallet is asset agnostic with secure Multi-Party Computation to ensure client assets’ safety.

Anti-Money Laundering (“AML”) Advisory Service

AOGB understands our clients concern about crypto compliance. We have partnered with Elliptic, a pioneer and leading provider of crypto compliance solutions globally to provide blockchain analytics for financial crime compliance.

 

The following services are offered:

 

1. Crypto Wallet Screening

 

- Assess the risk of crypto wallets. Obtain accurate insights with minimal effort. Understand who you are transacting with to comply with sanctions regulations and reduce fraud.

 

2. Crypto Transaction Monitoring

 

- Screen your crypto transactions for risk. Automate AML and sanctions checks to empower your compliance team to spend their time where it's needed most.

 

3. Virtual Asset Service Providers (“VASP”s) screening

 

- Understand the risk profile of VASPs, such as exchanges, when evaluating them as customers or counterparties.

 

4. Crypto Investigations

 

- Create detailed network visualizations of wallets and the transactions between them. Gain new insights and clearly communicate your findings.

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