A senior Armanino executive defended the audit work his company performed for FTX.US. interview It was published in the Financial Times on December 23rd.
Armanino Chief Operating Officer Chris Carlberg indicated that the company is confident in the quality of service it provides to FTX’s American branch.
“We definitely support the FTX US effort. We have never been involved in an internal control audit, although there have been some voices in the industry that they should have done a better internal control audit.” .”
He explained that these audit practices are required for audits of publicly traded companies and not for audits of private companies like FTX.US. He said the company has carried out the level of analysis required by the standard and that Armanino and its employees are “satisfied with the work we have done in that area”.
Carlberg also distanced Armanino from FTX’s international operations, saying the company “has never had a customer relationship” with the company or its affiliates.
He also confirmed that Armanino will stop providing financial statement audits and reserve certification reports to cryptocurrency companies. was first revealed by
However, Carlberg suggests that the company’s decision to stop offering the service was driven by market conditions. Previously, it was believed that Armanino would drop the cryptocurrency client due to potential reputational risks. Armandino, along with his Prager Metis, are facing a class action lawsuit from FTX customers.
Armanino is one of three audit firms expected to stop serving cryptocurrency companies, along with Mothers and BDO, based on reports around December 17.