Cryptocurrency has gained legitimacy as the IRS has started to require every taxpayer to identify if they have investments in digital currency when they file their tax returns. But what does this mean for financial statements......

Your employer comes to you and states that he is "too old" to learn the rules and regulations around cryptocurrency and he has directed you to create a knowledge document providing information which can be shared with his team. You must conduct research and review the requirements set forth by GAAP, GAAS and IFRS and provided a well thought out knowledge paper which answers the questions:

$1.$ How is cryptocurrency reported on the financial statements and is it taxable

$2.$ How do you audit cryptocurrency and what types of professional skepticism should an auditor employ?