# Audit

`kaal:entity:audit`

**Status.** derived

This node is assembled mechanically from the 5 claims that carry the concept tag `audit`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

5 claims across 3 works, 2019 to 2021.

**2019**

- [3409548-036](https://wulfkaal.github.io/claims/3409548-036) [design/argued] -- Recording all transactions in the public blockchain is what lets LendingRobot comply with its best execution obligations, making the public ledger a compliance instrument and not only an investment record.
  > Moreover, by recording all transactions in the public blockchain, LendingRobot is able to comply with its best execution
  Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548

**2021**

- [3782210-026](https://wulfkaal.github.io/claims/3782210-026) [empirical/evidenced] *(failure mode)* -- Every single reputational implementation the authors have audited in the blockchain DAO space carries the flaw of vulnerability to the sockpuppet attack on the Web of Trust model.
  > This is the flaw in every single reputational implementation we've audited in the blockchain DAO
  Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210
- [3782210-027](https://wulfkaal.github.io/claims/3782210-027) [failure/evidenced] *(failure mode)* -- SingularityNet's reputation system, which tracks self-reported transaction quality, transaction value, duration of satisfaction, and prior reputation weights, will have its value eroded by the sockpuppet attack once the system becomes valuable enough to merit attack, because it does not implement the other necessities.
  > Without implementing the other necessities, the sockpuppet attack will eventually erode their value, once it becomes valuable enough to merit the attack.
  Craig Calcaterra, Wulf A. Kaal, The Importance of Reputation for the Evolution of Decentralization (2021). SSRN: https://ssrn.com/abstract=3782210
- [3936876-031](https://wulfkaal.github.io/claims/3936876-031) [design/argued] -- Specialized digital custody audit procedures for verifying that a bank maintains access controls over a cryptographic key differ from the audit procedures used for physical assets, so some risk management processes must be tailored for digital custody.
  > Specialized digital custody audit procedures for verifying the bank maintains access controls for a cryptographic key will differ from the procedures used for physical assets.
  Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876
- [3936876-032](https://wulfkaal.github.io/claims/3936876-032) [empirical/evidenced] *(failure mode)* -- Externally led auditing of digital asset reserves among custodial service providers is declining, falling 24 percentage points relative to the 2018 sample.
  > The report noted this is a 24-percentage point decline compared to their 2018 sample.
  Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/audit.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.