Prospects for the use of blockchain technology in auditing

Abstract

The article is dedicated to analyzing the impact of blockchain technology on audit efficiency, specifically how blockchain can enhance the speed, accuracy, and transparency of audit procedures. The importance of ensuring the security and reliability of financial information is examined. Traditional audit methods are characterized by limited speed, significant costs, and insufficient transparency. One solution to this problem is the utilization of blockchain technology. A key feature of blockchain is decentralization. Security in blockchain is ensured through cryptography. Each transaction is signed with a digital signature that verifies the authenticity and integrity of the data. Transaction history is stored in unique blocks, making manipulations with transaction history nearly impossible. Smart contracts can be employed to automate audit procedures, verify the execution of agreements, and internal control processes of enterprises. They ensure the accuracy of agreement execution. Blockchain technology opens up broad possibilities for automating audit procedures and improving audit efficiency, including reducing the time and effort needed for audits, increasing the accuracy and reliability of verification, automating contract checks, providing instant access to data, automating audit operations, reducing the risk of errors, simplifying the audit of financial reports, ensuring transparency and data authentication, decreasing time and costs, and enhancing stakeholder trust. International audit corporations, such as Deloitte, PricewaterhouseCoopers, Ernst & Young, utilize blockchain in their audit procedures. It is important to consider potential challenges and risks associated with blockchain technology, such as security issues, legal matters, and the need to audit smart contracts themselves. Research in this field is aimed at addressing these issues and maximizing the advantages that blockchain technology can bring to the audit process.