Question

what the new tech called "blockchain" is and how it might affect audits and the auditing profession in the future. Will these changes be beneficial to the companies and the market? Will they be beneficial to the CPA auditor?

Answer 1

Block Chain:

Block chain stores data, which means information stored in blocks which links to form a chain from similar information in other blocks. It acts as a decentralized system for storing information, Block chain is kind of Tranparant

Impact on auditing

• With more companies exploring block chain business opportunities which include block chain business audit Trial.
• Audit firms and professionals should continue to learn more and keep themselves updated of the block chain business process, Block chain in auditing and accounting
• Change in business model may impact Financial reporting and Tax preparation
• Skill and roles of auditors may change because they will have to consider Traditional Ledgers and Block chain ledgers as well, as block chain Techniques and procedures emerge auditors have to be updated of the same
• If block chain Technologies are updated at client sites independent auditors to understand the block chain application and technology

Benefits to companies:

• it allows Transaction between two parties easily
• Efficient with innovative features
• It prevents deletion of Transactions since each blocks connected to each other in chain
• No single Party controls a Block chain
• It cannot be deleted or modified by single Party.

There are still many unknown on how will it impact the future in auditing profession, hence auditors should identify risks associated with new technology