This thread is in response to a previous one that I began
Full Blown MtGox Audit - Get Ready To participate. Starting Sept 25th
The sentiment in the previous thread was pretty much the proposal was a crazy and "preposterous".
Ok Ok Ok. Learning from mistakes and continuing forward.
So, the best way for an audit to occur is by encouraging any competitor to be audited.
If the market responds positively to that exchange with an audit, more than likely, all competitors will follow its lead.
However, the big question that popped into my mind is "what exactly would they be auditing?!?"
The obvious one is if all funds are accounted for, but isn't there much more that could be audited?
There are no exchanges (that I am aware of) that have their policies and standards of operation posted.
In order for a full company audit to occur, it seams apparent that there needs to be a set of guidelines to look at.
So, finally, the purpose of this post is to brainstorm the following
1) what practices could an exchange execute that would be undesirable for the market? (i.e manipulate the price)
2) From the ideas above, what policies and standards would you like to see an exchange adopt?
My goal is to form a well written document that any exchange could adopt or even adapt for their own.
From there, we would have a good idea of what kind of information an audit should contain.
Thanks for your criticism and input.