Blockchain technology will make the audit profession easier, decentralised and streamlined.
Some suggest that blockchain will replace the audit profession altogether. This is unlikely. While blockchain can take much of the time-consuming work out of auditing, such as extensive research and assuring transparency, there is a human aspect of the audit and assurance profession that cannot be removed. That’s why many auditors are looking into blockchain technology themselves.
Blockchain’s potential impact
If you’re not familiar with blockchain, it’s a digital, decentralised ledger. Its power is in its permanence. Once a piece of information is on the blockchain, any changes are visible to the entire network. This makes it a reliable source of trust for many auditors.
Companies can track their supply or value chains on the blockchain. Often, supply chains come into question with their ethical and sustainable impacts. Blockchain provides a method of tracking so that we can know, for sure, that unethical practices were not used in the creation of a product. This makes audits easier, because current supply movements and historical data are easily accessible.
Company issues such as corruption or fraud can also be tracked through the technology.
Removal of (other) intermediaries
The blockchain provides a single source of truth across all vendors.
This means that intermediaries or third parties who verify information are not necessary. Because communication is complex, and often easily misunderstood, often intermediaries are required between two companies. This can make the audit process timelier and more difficult.
With blockchain, communication and contracts are visible to all who have access. This means there is little opportunity for miscommunication.
What will be the future of auditing?
While blockchain will not replace auditors entirely, there are some aspects of the auditing profession that may change.
CPA auditors are a core part of financial auditing. These are Certified Public Accountants and Chartered Professional Accountants. These jobs may be disrupted by blockchain, because the jobs CPAs do – evaluating, verifying – can essentially be done by blockchain technology.
Auditors can secure their professions by preparing for the digital future, learning and implementing blockchain and other technologies, but also valuing the importance of human intervention.
The value of the auditing profession will be finding out where human and digital can excel.
With our platform STAMP, you can easily improve the auditability of your business. STAMP is blockchain-enabled and presents your data to you in a simple dashboard and through a series of reports. The platform is designed to take the difficulty out of complex data.
Contact us here for a demo or to find out more.