| Pub. Date | : April, 2023 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP030423 |
| Author Name | : Parul Dashora and Shurveer S Bhanawat |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 11 |
Adoption of blockchain technology by accounting firms and their clients will disrupt the accounting industry by greatly reducing the time and skill needed to perform a quality audit. Blockchain may eliminate the need for financial statement audits altogether. It is a peer-to-peer hosted public ledger that does not require a central authority to support or verify transactions, and is unalterable in future. The paper examines the implications of blockchain technology for auditing profession by reviewing the relevant literature. The study concludes that blockchain would impact some aspects of business operations by the end of the decade. Auditors need, at a minimum, an idea of how the technology operates in order to properly assess internal controls and understand the client's business. This will lend itself to higher quality audits. Auditors and accountants also need to pay close attention to and work with regulation around the technology. This will have an impact on how both auditors and their clients use blockchain, and how influential Distributed Ledger Technology (DLT) will be.
The huge accounting scandals during the last two decades around the globe call for a much better way of auditing. The new revolutionary technology named blockchain has the potential to serve this purpose of audit industry. The technology has the capability to change the working of auditors to a great extent. As technological advancements like computer, Internet, email, and different types of software have enhanced audit efficiency, so can blockchain.