What is a financial audit, and why is it needed?
For those of you who still don’t know, “the audit opinion is intended to provide reasonable assurance, but not absolute assurance, that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework. “
“The purpose of an audit is to provide an objective independent examination of the financial statements, which increases the value and credibility of the financial statements produced by management, thus increase user confidence in the financial statement, reduce investor risk and consequently reduce the cost of capital of the preparer of the financial statements.” (source Wikipedia)
Till this day, despite all the criticism and many promises, Tether have still not completed an external audit of their accounts, which would easily dispel their critics’ claims of financial impropriety.
In theory Bitfinex exchange who issues Tether, makes enough profit through trading and lending fees, to have enough cash reserves to cover the issued Tether tokens, however until we see a full independent audit completed, doubt will remain. And doubt is the last thing we need in these volatile crypto markets, so hopefully Tether will provide a full and transparent audit soon. (source: https://www.2100news.com/2018/03/29/tether-cancels-audit-and-issues-300m-more-tokens/)