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Financial State Validation
The Digital Audit Engagement Agreement.

External Validation Contract

The ERC20 External Validation Contract "EVC" is designed to retain a cohort of validators for the purposes of financial state validation prior to publishing. It is also used for the validation of Process Control NFTs to assure that they comply with specified functional objectives before they are published and used.
The reporting entity or the creator of Process Control NFTs invite specific validators to the cohort. The validators accept the engagement and become members of the cohort.
All activity in the cohort is passed to the members in a highly encrypted environment.

ISAE 3402 Standard

The ISAE 3402 standard is set by the IAASB and covers controls that affect financial reporting at a service organization. The EVC is designed to comply with this standard during an audit engagement that is scoped to cover controls at a service organization.

CEAOB Mandates

The Committee of European Auditing Oversight Bodies "CEAOB" issued guidance in November of 2019 on the auditor's involvement on financial statements in the European Single Electronic Format "ESEF".
The CEAOB Guidance requires auditors in the 27 member states of the EU to include the machine readable financial statement instance within the scope of an audit engagement agreement.
The EVC and the use by the auditor of the Pacioli Logic and reasoning engine is designed to fulfil the auditor's responsibilities to comply with this guidance when auditing financial statements of economic entities in the EU.
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External Validation Contract
ISAE 3402 Standard
CEAOB Mandates