Global Top 4 Accounting Firms Hesitate to Audit Tether, Tether CEO: Actively Establishing Relationships
Tether is currently working hard to establish a good relationship and obtain audits from one of the Big Four accounting firms.
Four major auditing firms, Deloitte, EY, KPMG, and PwC, are afraid to work with Tether due to concerns about their reputation. None of the Big Four is willing to audit us. However, hiring one of these companies as Tether’s auditing institution remains a top priority.
Paolo Ardoino, in an interview with DL News, suggested that traditional financial institutions are not transparent and emphasized that stablecoin service providers like Tether and Circle may not be as profitable as traditional finance. This is because the transparency of blockchain makes auditing easier.
However, Tether is still working hard to establish a good relationship and obtain audits from one of the Big Four accounting firms.
Auditing firms do not need to take risks.
In the crypto market, which has experienced the collapse of FTX, prolonged hacker attacks, and regulatory pressure, Paolo Ardoino pointed out that it is not easy to become a client of a top accounting firm in such circumstances.
He stated, “Do they need to take this risk? If you are one of the Big Four accounting firms with clients covering the entire banking industry, why would you risk offending 100,000 customers for a few stablecoin service providers?”
Paolo Ardoino also mentioned that some factions in the US Congress are very opposed to cryptocurrencies.
(Elizabeth Warren, an anti-crypto legislator, claimed that some countries are using cryptocurrencies to evade sanctions, which was refuted by the community.)
There is a difference between attestation reports and audit reports.
From 2014 to 2017, Tether did not release reserve reports, and since 2022, Tether has relied only on quarterly “attestation reports.”
There is a distinction between attestation reports and audit reports. Attestation reports usually cover specific financial information or activities, such as specific transactions or asset accounts provided by clients. Audit reports, on the other hand, are more comprehensive, covering the overall financial condition and operations of the company, and may further identify unknown risks and compliance issues.
The media representatives of the Big Four accounting firms did not respond to DL News’ request for comments.
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Further reading:
Tether expands its territory, launching decentralized infrastructure with four arrows.
Cantor Fitzgerald, Tether’s custodian, promotes stablecoins, which are beneficial to the U.S. economy.
