Examination of Blockchain Technology Integration in Business and its Potential Impact on the Efficiency and Effectiveness of External Financial Auditing

The purpose of this paper is to analyze the impact of blockchain in the auditing industry. The focus of which is on improvement of the effectiveness and efficiency of the audit process through the implementation of blockchain in businesses. Examination will focus on limitations of audit, blockchains ability to transform processes, benefits and challenges, and the effect on the roles of auditors. A blockchain provides a secure digital ledger for transactions which can be incorporated into many different industries and processes. Detailed analysis through examination of economic, legal, regulatory, and political standing is provided for the audit process to understand the current state of the industry. Secondary sources of information were used to gather data on blockchain such as established literature and research papers. Survey results are gathered from professionals in the field on experience and knowledge of blockchain. We identify that there is a gap in understanding between audit professionals and understanding of blockchain. The technology is in its infancy and is still developing to become a large changing factor to the audit profession. The use of blockchain will hinder efficiency and effectiveness in the short term but with time and proper implementation, blockchain will prove to be beneficial to the effectiveness and efficiency of audits. Changes will be needed in the audit profession to adopt blockchain technologies