The Role of Information Asymmetry Risk in the Audit of Digital Currencies

Abstract

Given the rapid advancement of global financial system along with unconventional threats from digital currencies to accounting and auditing, identifying information asymmetry risk in case of audit of digital currencies is one of the main objectives which this study seeks to explore. It is devoted to the study of the theoretical model of accounting information risk and the auditin g processes for digital currencies, and targets identifying that how this type of risk is associated with auditing processes by l eading an ideology about informational asymmetries. The focus of investigation is the Iraqi Stock Exchange as research population in which the sample includes a number of banks listed there, since this section embodies the groups most attached to new financial differences. Research period is between years 2024 and involves data released by Iraq Stock Market. The analysis was applied by SPSS 20 and several tests such as Model Summary test, ANOVA tests, Correlations and Coefficients test for the sample research. The findings showed that information asymmetry risk was positively associated with the effectiveness of digital currency auditing, which emphasised that reducing such risks will lead to more reliable audit practices. This requires the advancement of auditing techniques and becoming more reforms in accounting and regulatory standards to catch up with the fast technological evolution of digital currencies.