Let’s Hash Out the Issues in Auditing Recreational Marijuana Businesses Before the Opportunities Go Up in Smoke

Abstract

Within North America, there is a plethora of regulations regarding the accounting, taxation, and auditing of medical and/or recreational marijuana given conflicting treatment within various jurisdictions in either Canada or the United States. This study focuses on examining the auditing issues firstly in the United States where recreational cannabis is allowed in nine jurisdictions with 29 allowing medical usage. Canada is then considered wherein medical marijuana is allowed nationwide with recreational marijuana becoming legal on October 17, 2018. The study identifies the lack of meaningful auditing standards and comments where additional pronouncements are required to enhance transparency and heighten investor confidence.