THE CASE FOR BLOCKCHAIN IN THE FINANCIAL AUDIT
The Case for Blockchain in the Financial Audit
Trends in professions change often. With the advent of technology and its introduction, in particular to accounting,It seems to be changing at an exponentially fast rate. Even more specifically to audit, blockchain(ing) is the new big thing.
As I contemplate the human connection of the audit team, my first thought is if blockchain is becoming more of the norm, won’t it replace auditors? As I have read several pieces in search of evidence on the contrary, the answer is “no!”
Blockchaining is so new that most folks don’t know the meaning or the value. A CPA may very well be the centerpoint between the system itself and the organization. With this point of contact, a CPA will be needed in a role that is next level. They could very well be auditors of Smart Contract and Oracles, serve as Administrator function and Arbitration function. The general pieces are still intact. For remember, a CPA auditors role is to apply objectivity and professional skepticism to provide reasonable assurance about whether their clients financial statements are free of material misstatements. Also, depending on the engagement, about whether the client’s internal controls over financial reporting are performing in the most efficient way.
We must look to the things blockchaining can do for the auditing world. Along with the help of CPA auditors, it can provide a fraud free audit. It can put controls in place so as to not allow any double entries or misinformation. It can make contracts even more rock solid than ever before. And along with the CPA auditors, blockchaining can make the chance of deception and deceit disappear.
After reading and analysis of blockchaining, I still see tremendous advantages for CPAs to embellish their practice with the knowledge of this new, still somewhat obscure technology. To learn and grow with it will not overshadow the human touch but can bring so many beneficial attributes to the audit table. Change is hard; but change is good!