BBlockchain technology has a far-reaching impact on the auditing profession, with new methods being researched every day to incorporate blockchain in auditing. With the many advantages of the blockchain technology, it promises to be very useful in auditing. Since blockchain is an open record of transactions made between two parties, it allows the auditor to monitor them more conveniently. No changes can be made in blockchains, keeping them in check and dependable.
This also means, all the recorded transactions can be verified by the auditor without putting much effort, making it less time consuming, and thereby cost-efficient.
Another help that blockchain provides is during the checking of data. Traditionally auditors deal with a huge amount of data, because of which they are unable to check the entire record. For this, they apply random sampling methods, but with blockchain, this task is reduced to mere usage of coding after which the auditors are able to check each and every transaction.
You must have heard about blockchain technology, the new talk of the town. Blockchain has been received quite well by almost every sector of the economy. With bitcoins becoming all the rage, blockchain (the technology behind) too attracted people’s attention.
Blockchain in simplest terms, is a list of distributed ledgers that continue to grow and record transactions made between two parties. The recorded data is in the form of blocks that are permanent and cannot be tampered with. But perhaps the popularity of blockchain lies in its core feature where the data is not stored in one place, instead is shared between computers by a peer-to-peer network, thus making it more secure and decentralized. To make changes in a particular block, you need to either bring changes to all the blocks in the chain network or add a new block with the alterations. Since the blocks move in a chronological manner, the data is visible in a progressive manner too.
The commercial acceptance of blockchain has led businesses to experiment with it in different sectors of the economy. One such sector, where the popularity of blockchain is increasing with time is the finance and audit sector.
Blockchain and the future of auditing
The interest of business firms in blockchain has given an edge to auditors to explore the technology more. In
away with the manual work that consumes most of their time,
The future of auditing looks bright with blockchain, but there are still certain considerations that need to be taken care of. One major roadblock in this regard is the
Though we are making progress each day, there is still a long way for blockchain to take over the auditing sector.