Blockchain in Accounting and Auditing

Blockchain is a unique ledger that records transactions between organizations, suppliers, and customers. When data is provided into the associated “blocks” they create an “operational record” and when the information is added, the blockchains are established.

Everyone with the right to join Blockchain can view the same information in real-time. You can see who added data to each block and when this has been done. These blocks cannot be removed or changed. All Blockchain users own and are responsible for maintaining the blockchain, Guest Posting instead of having only one person controlling it.

In a secure Blockchain, Blockchain users decide who can join these ledgers and access levels. Some information can be encrypted to protect commercial security. A company can have a Blockchain with its suppliers, customers, banks, and tax authorities.

One thing that may be less known is that Blockchain technology has a great influence on the Accounting and Auditing industry and is a technology trend that experts in Finance : Accounting : Testing Math concepts cannot be underestimated in the development-like context of the 4. 0 Technology Innovation. Specifically:

Firstly, Blockchain application can help keep accounting information secret. Blockchain is designed to resist data change. Information in Blockchain cannot be changed and only added with the consent of all nodes in the system. Even if area of the Blockchain system collapses, other computers and nodes works to protect information. By creating a unique ledger on a computer network; Their companies, customers, banks and tax authorities take notes and share information. When any of them add information, the ledger will automatically verify and adjust the data. Each party involved doesn’t have to maintain their ledger, so accountants will not have to perform all transaction processing and adjustment. Blockchains create a real- time traceability record, so if Blockchain technology is widely followed, the role of auditors in the business transactions performed in Blockchain will not be necessary.

Secondly, Blockchain application helps minimize the opportunity of economic mistakes. Blockchain Technology in Accounting : Auditing greatly reduces the opportunity of errors when comparing complex and different information from different sources. Moreover, accounting records will not be edited and changed once saved to Blockchain, even if required by web pages the accounting system. Because on the Blockchain platform 香港區塊鏈, every day transactions are recorded and verified, so the integrity of financial records is guaranteed. Blockchain can reduce accounting errors and frauds. When a data block is added to the stringed, other network must verify that data. When we make a transaction on the stringed, all computers in the network will identify you and check if you have the right to trade or not. So if we need to pay $100 and we just transfer $50 by mistake, the other blocks will point out that mistake.

Additionally, cybersecurity is tightened thanks to Blockchain technology. A hacker will have to interfere with the entire computer network at the same time to make any damage. Anxieties one computer is bitten, other computers in the network will be able to detect and respond to the attack. Some other uses of Blockchain technology in Accounting : Audit industry can be mentioned as: Audit evidence can be watched; Automatic audit process; Verify transactions; Monitor property ownership; Smart contract registration and inventory system for any asset, from raw materials to mental property.