A blockchain is a digital ledger which is created\nfor capturing transactions conducted among various parties in a network. It is\na Distributed Ledger based on Internet which includes all transactions since\nits creation. All participants (i.e., individuals or businesses) who using the\nshared database are \u201cnodes\u201d connected to the blockchain, each maintaining an\nidentical copy of the ledger. Every entry into a blockchain is a transaction\nthat represents an exchange of value between participants (i.e., a digital\nasset that represents rights, obligations or ownership).<\/p>\n\n\n\n
Blockchain technology is a distributed ledger\nthat assures the confidence of everyone involved, and the strong cryptographic\nbasis shows that, when implemented properly, the blockchain offers effectively\nunbreakable protection. Initially, blockchain was created for Bitcoin, but its\nmuch wider potential is now starting to be applied to supply chains, finance,\ninsurance, and other areas. Blockchain, is a relatively new technology, and is\npoised to change how accounting is done on a more fundamental level. <\/p>\n\n\n\n
Blockchain is considered reliable because full\ncopies of the blockchain ledger are maintained by all active nodes. Thus, if\none node goes offline, the ledger is still readily available to all other\nparticipants in the network. Hence, no single party controls a blockchain and\nno single party can modify it or turn it off.<\/p>\n\n\n\n
Why Blockchain is an opportunity?<\/strong> In the past, the quantum of data and the numerous\nsources from which auditors have traditionally needed to collect, organize,\nanalyze, prepare, and assess this data has been a very important factor in\ndetermining the duration and complexity involved in the audits. Further, the\naudit processes were, both time-consuming and potentially error-prone also that\ndo not take full advantage of the ability of the Accounting Professionals\u2019 to\nsee the bigger picture. AI Technology has the ability to harness voluminous\ndata to provide insights and to drive the quality of the audit.<\/p>\n\n\n\n Conclusion:<\/strong> A blockchain is a digital ledger which is created for capturing transactions conducted among various parties in a network. It is a Distributed Ledger based on Internet which includes all transactions since its creation. All participants (i.e., individuals or businesses) who using the shared database are \u201cnodes\u201d connected to the blockchain, each maintaining an identical copy of the ledger. Every […]<\/p>\n","protected":false},"author":3,"featured_media":536,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[17,14],"tags":[19,134],"class_list":["post-535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-assurance","category-general","tag-audit","tag-blockchain-technology"],"yoast_head":"\n
Blockchain has the potential to enhance the accounting profession by reducing the costs of maintaining and reconciling ledgers, and providing absolute certainty over the ownership and history of assets and also free up resources to concentrate on planning and valuation, rather than recordkeeping. Hence, Blockchain can be a replacement for bookkeeping and reconciliation work. <\/p>\n\n\n\n
Since the technology will introduce new risks related to the reliability of the blockchain, automated controls, and related-party transactions, the increasing impact of blockchain on industries and on internal controls over financial reporting also means that audit methodologies will need to evolve. <\/p>\n","protected":false},"excerpt":{"rendered":"