Blockchain technology has been characterized as the ‘fifth pillar of the IT revolution’, and it has many benefits for use in accounting, particularly in audit and assurance. Kris Cooper, trainee reporter, GlobalData reports.
The Big Four have been gradually integrating blockchain technology into their services, but progress has been somewhat slow. Since 2017, there has been discussion about how blockchain can benefit auditing and assurance processes by quickening the methods, improving transparency, and verifying transactions. Simultaneously, as cryptocurrencies have increased in use and circulation, there has been a demand for auditing of blockchain environments, which companies such as Deloitte have been working to facilitate.
A McKinsey and Company report has estimated that by 2027, “up to 10% of global GDP could be associated with blockchain-enabled transactions”, signaling the imminent need for accounting firms to be well acquainted with blockchain environments and utilize the technology. While blockchain technology could speed up the auditing process significantly, it has transformative implications for assurance with its inherent immutable and transparent qualities.
Read more at the International Accounting Bulletin here