How Does the Audit Process Handle Vulnerabilities Found in External Libraries?
The audit process must address vulnerabilities found in external, non-audited libraries that the smart contract relies on, such as OpenZeppelin or other DeFi protocols. If the vulnerability is in the external library, the auditor must flag the contract's reliance as a critical risk, even if the contract's own code is flawless.
The recommendation is usually to wait for the external library to be patched or to use a verified, well-known version. The audit report typically includes a section detailing these "external dependencies and assumptions."
Glossar
Audit Process
Verification ⎊ The audit process in financial derivatives and cryptocurrency involves a systematic examination of an entity's financial records, operational controls, and risk management framework.
Vulnerabilities
Exposure ⎊ In cryptocurrency, options trading, and financial derivatives, exposure represents the potential for adverse outcomes stemming from inherent structural weaknesses or design flaws within the underlying systems.
Non-Audited Libraries
Library ⎊ Non-Audited Libraries are external code modules or dependencies integrated into a crypto derivative smart contract or trading system that have not undergone a formal, independent security review.
Audit
Verification ⎊ Audit within cryptocurrency, options trading, and financial derivatives represents a systematic examination of code, processes, and financial records to ensure integrity and adherence to established protocols.