An exploratory study of the perceptions of auditors on the impact on Blockchain technology in the United Arab Emirates

Document Type

Article

Source of Publication

International Journal of Auditing

Publication Date

1-1-2022

Abstract

The purpose of this paper is to explore the prospects of blockchain technology (BCT) on audit practice. Semi-structured interviews were conducted with practitioners from the Big Four and non-Big Four firms; their responses were analysed thematically. The findings are significant regarding the three main themes identified: namely, audit practice, procedures and the challenges associated with the adoption of BCT. The adoption of BCT has the potential to impact audit procedures to a certain extent. The interviewees believed that BCT would transfer Audit 3.0 to Audit 4.0. For instance, external confirmations could be enhanced by the move towards a more automated verification process. In addition, the audit budget time could be decreased with the help of this technology in the long run. The need for physical observation could be diminished because of this technology, as it could track observations on a real-time basis. This technology could also facilitate analytical procedures, as it has the potential to incorporate other analytical tools simultaneously. Furthermore, it could reduce the costs associated with fraud detection to a great extent, as it provides a tamper-proof, immutable audit trail.

ISSN

1090-6738

Publisher

Wiley

Disciplines

Business

Keywords

audit practice, audit procedures, blockchain, disruption theory, UAE

Scopus ID

85142878563

Indexed in Scopus

yes

Open Access

no

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