{"id":27790,"date":"2020-01-10T19:26:59","date_gmt":"2020-01-10T13:56:59","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=27790"},"modified":"2020-01-10T17:29:22","modified_gmt":"2020-01-10T11:59:22","slug":"is-blockchain-a-threat-to-accounting-and-auditing","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/is-blockchain-a-threat-to-accounting-and-auditing\/","title":{"rendered":"Is Blockchain a threat to Accounting and Auditing?"},"content":{"rendered":"

With the aim of improving the ledger transaction and to provide transparency in the accounting<\/a> and auditing, new blockchain technology has been launched to improve the accounting and to open up the probability of real-time audit. In recent times, the impact of Blockchain on auditing and accounting through distributed ledger arrangements, recording real-time transactions cannot be ignored.<\/p>\n\n\n\n

Before\nknowing the potential uses of Blockchain in auditing and accounting are. Let us\nfirst know what is accounting, auditing, and Blockchain:<\/p>\n\n\n\n

  1. Accounting <\/strong>– Accounting is the process of recording transactions related to financial matters. It also refers to maintaining and summarizing financial transactions and reporting the results. Accounting primarily concerned with the methods for recording transactions and keeping the financial records. Further, Accounting furnishes information on the –<\/li>
  2. Information and resources are available to the Company\/firm.<\/li>
  3. Ascertaining the financial affairs,<\/li>
  4. Maintenance of accounts in a proper way.<\/li>
  5. Auditing <\/strong>– Auditing is a process systematically done by an independent authority or a body corporate<\/a> with the necessary qualifications. The process involves the examination of books of account and financial information of the company. i.e. it also includes a review of the internal system and internal control of the organization\/Company. Auditing includes-<\/li>
  6. Internal Audit<\/a> <\/li>
  7. External Audit<\/li>
  8. Blockchain <\/strong>– Blockchain technology is used by the government, banking sector, industries, and innovators for supply chain, financial services, healthcare to disrupt and transform traditional business models and also for exploring different ways of using Blockchain technology. Significant business benefits are achieved by the industrialists which resulted in greater transparency, High security, an increase in transparency and reduction in costs.<\/li><\/ol>\n\n\n\n

    The Potential use of blockchain in Accounting and auditing<\/h2>\n\n\n\n

    The potential use of Blockchain\nin the Accounting and Auditing are as follows-<\/p>\n\n\n\n