The Institute of Internal Auditors sent a letter to Congress Thursday recommending that all US crypto exchanges have an independent “internal audit function.”
Inside were four separate legislative proposals that will “promote stronger corporate governance, greater transparency and accountability, and enhanced investor protections at cryptocurrency exchanges operating in the United States,” according to the May 4 letter written by Anthony Pugliese, president and CEO of the IIA.
The second proposal defines an internal audit function as “a professional individual or group…responsible for providing the board of directors and management with…: objective assurance over the covered entity’s internal controls; consulting services; and strategic advice on risk mitigation.”
Additionally, the second proposal stipulates that the internal audit function will be independent from management.
The third proposal mandates the establishment of this internal audit function for all US crypto exchanges. The leader of the function will also be responsible for briefing a crypto exchange’s board on “material risks” no less than twice a year.
This IIA previously sent a letter to Congress in…
