Auditing standards are established guidelines governing the independent examination of financial records or system operations. These principles ensure consistency, reliability, and impartiality in evaluations. Adherence to these standards provides assurance regarding the accuracy and integrity of reported information or system functionality.
Context
In digital assets, auditing standards are critically examined for their applicability to smart contracts and blockchain protocols. The absence of universally accepted crypto-specific standards creates challenges for verifying system security and financial transparency. Ongoing efforts aim to adapt traditional auditing practices or formulate new frameworks to address the unique characteristics of decentralized systems.
The COAI token experienced a catastrophic failure due to extreme governance centralization and fragile algorithmic tokenomics, enabling a 96% value collapse.
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