Problem
i. Paragraph 26 of AU-C 315 requires the auditor to "identify and assess the risks of material misstatement at the ... financial statement level and levels of assertion." What are the identifiable risks of material misstatement regarding the existence, rights, and obligations of an entity's cryptocurrency account balance?
ii. Paragraph 24 of AU-C 240 requires that the auditor "assess whether information obtained from the risk assessment procedures and related activities performed indicates that one or more fraud risk factors are present." What potential fraud risks, if any, may be identified with regard to the Entity's cryptocurrency account balance?