Audit Requirements

Definition ∞ Audit requirements specify the criteria and standards that systems, particularly smart contracts and blockchain protocols, must satisfy during a formal review. These stipulations ensure code integrity, identify vulnerabilities, and confirm adherence to security best practices. Fulfilling these requirements is essential for establishing operational reliability and protecting user funds within decentralized applications. The process typically involves independent security firms examining the codebase for logical errors or attack vectors.
Context ∞ In the digital asset space, news often highlights projects undergoing or failing to meet audit requirements, influencing investor perception and adoption rates. Regulatory bodies are increasingly considering mandatory audit requirements for platforms handling digital assets, aiming to mitigate systemic risks. Publicly available audit reports contribute significantly to transparency and trust in new blockchain initiatives.