BTC_AF Demonstration

Wiehann Olivier () and Pieter Buys ()
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Wiehann Olivier: North-West University & Forvis Mazars South Africa, Applied Research in Management Cybernetics
Pieter Buys: North-West University, Applied Research in Management Cybernetics

Chapter Chapter 8 in Auditing Bitcoin, 2026, pp 105-128 from Springer

Abstract: Abstract Chapter 8 transitions the development of the Bitcoin Audit Framework (BTC_AF) from theory to practical application. Through the Bitwise Bitcoin Spot ETF and Sixpence illustrations, the framework is tested across various bitcoin custody methods. Using the basic concepts from the ADR/eADR approach’s observation-centric iteration, the BTC_AF is evaluated through authentic audit procedures, including address validation, transaction reconciliation, and cryptographic ownership testing. This dual-case approach demonstrates the BTC_AF’s robustness in addressing key audit assertions related to the Statement of Financial Position (SoFP) and Statement of Profit or Loss (SoPL). It accommodates technical complexities, such as Hierarchical Deterministic (HD) wallets, xpubs, multi-signature configurations, and transaction cut-offs. Each procedure reinforces the framework’s relevance and adaptability to the challenges of blockchain auditing. The BTC_AF demonstration confirms that it provides auditors with repeatable, verifiable procedures to obtain sufficient and reliable evidence in compliance with international standards. Iterative insights from these applications contribute to both refinement and the broader development of theory. This positions the BTC_AF as a scalable, practical tool that enhances audit assurance in the context of blockchain-based digital assets and an increasingly decentralized financial environment.

Keywords: Audit assurance; Blockchain auditing; Digital assets; Cryptographic testing; Statement of financial position; Statement of profit or loss (search for similar items in EconPapers)
JEL-codes: M15 M42 O31 O33 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-981-95-5775-2_8

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