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Pre-audit reconciliation for crypto-native companies
What auditors actually want to see when a crypto company hits its first audit, and how to prepare for it.
Visakh Sethumadhavan March 4, 2026 5 min read
A crypto company's first audit is rarely a surprise on the audit side — auditors know how to ask. It is a surprise on the company side, because the level of documentation auditors want is higher than what most growing teams keep.
What auditors ask for first
- Wallet inventory with entity ownership for every address.
- Connection-by-connection completeness reconciliation against chain data.
- Classification methodology document — what every transaction type is and how it is accounted.
- Cost-basis methodology document — FIFO, LIFO, Spec-ID, with the rationale for the choice.
- Monthly close pack for the period under audit, with the reconciliations attached.
- Sign-off trail for material judgment calls (token classifications, impairment decisions, related-party transactions).
The four-week pre-audit sprint
- 1Week 1: wallet inventory and entity mapping audit. Confirm every wallet's owner.
- 2Week 2: completeness pass on every connection. Find and fix gaps.
- 3Week 3: classification methodology documented in writing, with examples.
- 4Week 4: dry-run the audit request list and assemble the response pack.
Most first audits fail not because the numbers are wrong but because the support is missing. The numbers usually hold up. The week-four sprint is about making the numbers defensible on paper.