The Impact of using Blockchain on the Auditing Profession
MOHAMMAD AHMAD ALNAIMAT1, OLEG KHARIT2, SAFAR PURHANI3,
OLENA SYMONENKO4, HANNA BRATUS5
1Department of Banking and Financial Sciences, Faculty of Business,
Alzaytoonah University of Jordan,
St 594, Airport Rd., Amman,
JORDAN
2Israel Institute of Technology Technion,
3200003, Haifa,
ISRAEL
3Department of Finance and Accounting, Faculty of Economics and Business,
Western Caspian University,
31 Istiglaliyyat Str., AZ1001, Baku,
AZERBAIJAN
4Department of Statistics and Economic Analysis, Faculty of Economics,
National University of Life and Environments Sciences of Ukraine,
11 Heroes of Defense Str., Building No. 10, 03041, Kyiv,
UKRAINE
5Department of Economics and Business Management,
Interregional Academy of Personnel Management,
2 Frometivska Str., 03039, Kyiv,
UKRAINE
Abstract: - Rapid technological changes cause several challenges for established processes and approaches to
the auditing. A special role in this context is assigned to the blockchain as a key driving force in changes in
auditing. The aim of the article is to identify the key features of blockchain’s impact on auditing. The research
employs economic and statistical methods, namely trend analysis, in-depth semi-structured interviews,
assessment of the economic effect to identify the main changes in auditing under the influence of blockchain
technologies. The experience of using blockchain was studied through a sample of 27 auditors from Azerbaijan,
Israel, and Jordan. The respondents indicated changes in the operational work of auditors (88,9% of
respondents) among the main areas of influence of blockchain technologies. The surveyed auditors also
consider it necessary to improve auditors’ IT skills under the influence of blockchain (88,9% of respondents).
The respondents emphasize the appropriateness to change the audit methodology under the influence of
blockchain (77,8% of respondents). The surveyed auditors see the prospect in using real-time auditing (55,6%
of respondents) and other higher value-added services (44,4% of respondents). Data from the financial
statements of the 4 largest auditing companies were analyzed to determine the economic effect of the impact of
blockchain on auditing. It was determined that the average annual growth rate under the basic scenario is 6.9%
for 2023-2025, or $72.1 billion on average per company in 2025. The prospects for further research are
studying the directions of strategic and operational transformations in auditing because of the influence of
blockchain in terms of audit methodology, organizational structure of audit companies.
Key-Words: - blockchain, audit, IT skills, real-time audit technology, audit IT infrastructure.
Received: August 21, 2022. Revised: September 23, 2023. Accepted: October 13, 2023. Published: October 24, 2023.
WSEAS TRANSACTIONS on INFORMATION SCIENCE and APPLICATIONS
DOI: 10.37394/23209.2023.20.39
Mohammad Ahmad Alnaimat, Oleg Kharit,
Safar Purhani, Olena Symonenko,
Hanna Bratus
E-ISSN: 2224-3402
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1 Introduction
The advent of blockchain technology became
publicly known in 2008 when it was initially
presented as the underlying framework for the
Bitcoin cryptocurrency. One notable benefit of
blockchain technology is its capacity to remove
middlemen, such as banks and other financial
intermediaries, inside the system of transaction
record-keeping. The establishment of this attribute
is facilitated using architectural concepts in
constructing the blockchain system, which
incorporates a fusion of peer-to-peer networks and
encryption. Furthermore, it is worth noting that
blockchain technology possesses the capacity to
substantially diminish transaction expenses and
settlement duration by eliminating the necessity for
several middlemen. Consequently, this reduction in
intermediaries leads to a decrease in labor prices for
experts, specifically auditors. It is imperative to
acknowledge that the pervasive utilization of
blockchain technology has yielded transformative
prospects across various sectors, notably the
financial, healthcare, education, governmental, and
non-profit domains. Further, several entities such as
the corporate sector, research centers, and
governments are actively engaged in extensive
endeavors to examine and develop practical
solutions based on blockchain technology. The
primary focus of these endeavors is to modify and
enhance current business processes and models. The
discipline of audit is not exempt from this
phenomenon. Blockchain technology can
revolutionize the transaction record-keeping process
inside the audit framework, including the many
stages of transaction initiation, processing,
verification, recording, and reporting in the
management and financial reporting system.
The objective of this study is to ascertain the
primary characteristics of the influence of
blockchain technology in the field of auditing. The
objective of this study encompassed the
accomplishment of the following research goals:
1. Determine the fundamental elements that
contribute to the influence of blockchain on the
field of auditing
2. Examine the primary alterations in auditing
practices resulting from the integration of
blockchain technology
3. Assess the economic implications associated
with the use of blockchain technology in the
context of auditing.
2 Literature Review
The researchers investigate the theoretical and
practical aspects, together with the characteristics
pertaining to the utilization of blockchain
technology in the field of auditing. Scholars engage
in a discourse over the potential efficacy of
blockchain technology in the realms of audit and
back-office services, [1]. Scholars are now
investigating the prospective advantages associated
with the utilization of blockchain technology,
including enhanced authenticity and transparency,
which have the potential to greatly enhance audit
efficiency. The present study, [2], examines a data
auditing system for ensuring the integrity of large
data through the utilization of blockchain
technology. A proposal has been made for an audit
scheme focused on ensuring data integrity in the
Internet of Things (IoT). This scheme utilizes
collaborative blockchain technology, incorporating
consortium characteristics to enhance security and
transparency during the audit process, [3]. The idea
of blockchain-based transparent auditing, as
established by the authors in, [4], places significant
emphasis on the security and transparency of
audited data within the framework of blockchain
technology. The utilization of blockchain
technology to audit data logs has been investigated
with regards to enhancing audit security and
transparency, [5]. The notion of employing
blockchain technology to provide safe,
decentralized, and automated auditing procedures
has been examined by researchers within the
framework of reorganizing the existing audit
process, [6]. The study investigated the influence of
blockchain technology on the professional
competencies of auditors, [7]. The authors in
reference, [8], have devised a methodology for
implementing auditing and compliance measures in
this domain by leveraging blockchain technology.
The present study posits that the utilization of
blockchain technology has the potential to enhance
the quality of audits. Several research have
examined the challenges associated with the
implementation of blockchain technology in the
auditing domain, with a specific focus on
application scenarios. These studies underscore the
significance of blockchain technology within the
context of auditing. The implementation of
blockchain technology from an audit viewpoint in
risk management was investigated, [9]. The
influence of blockchain on auditing in terms of
security is examined by the author in reference,
[10]. The study elucidates potential benefits and
drawbacks, encompassing security concerns, that
might emerge from the adoption of blockchain
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DOI: 10.37394/23209.2023.20.39
Mohammad Ahmad Alnaimat, Oleg Kharit,
Safar Purhani, Olena Symonenko,
Hanna Bratus
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technology in the field of auditing. The article, [11],
introduces a public audit system that utilizes
blockchain technology, using its inherent technical
characteristics. In this study, researchers, [12],
investigate the potential of employing blockchain-
based smart contracts to facilitate auditing
procedures, hence enabling a substantial level of
automation in the auditing process. A distributed
blockchain-based audit system was presented to
enhance transparency and dependability in network
management systems, [13]. A data integrity audit
system based on blockchain extension technology
was examined in a study to assess its potential for
enhancing the reliability of data audits, particularly
in relation to the accuracy of the audit outcomes,
[14]. Much research has been conducted in the
domain of employing blockchain technology for the
purposes of auditing and data storage, with the aim
of enhancing confidence among external users and
the public. In, [15], an approach is presented that
aims to guarantee both privacy and auditability in a
decentralized storage log through the utilization of
blockchain technology. The study conducted by,
[16], examines the utilization of a blockchain
architecture as a means of automating auditing
processes and fostering confidence among both
public and external users. The creation and
implementation of a blockchain-based auditing
method is described by authors in, [17]. The
utilization of blockchain technology for conducting
public audits of large-scale data stored in cloud
environments was explored in a study conducted by,
[18]. Researchers suggest a blockchain-based
strategy to auditing data sharing that can increase
openness in the exchange of data between diverse
parties during audit, [19]. Numerous investigations
have been conducted to examine the progression
and execution of diverse audit frameworks and
methodologies relying on blockchain technology.
The paper, [20], presents a novel way to data
auditing utilizing blockchain technology, which
enhances the dependability of audits. The study,
[21], introduces a system that utilizes blockchain
technology to enhance the software audit procedure.
The authors investigate the utilization of blockchain
technology to establish an impervious audit system
that relies on database management, [22].
Nevertheless, the current body of research lacks
comprehensive coverage of the application of
blockchain technology in auditing, particularly in
terms of addressing the requirements and bolstering
the incentives of stakeholders.
3 Methods
3.1 Research Design
The initial phase involves gathering data pertaining
to the current utilization of blockchain technology in
the field of auditing, which will subsequently be
subjected to additional analysis and examination
during the study. The last phase of the research
entails an examination of the primary domains in
which blockchain technology is applied within the
field of auditing. The utilization of trend analysis
was employed to unveil the primary patterns in the
adoption of blockchain technology. Subsequently, a
research endeavor ensued, employing
comprehensive semi-structured interviews with
auditors. The primary objective of this investigation
was to discern the principal alterations in their
professional practices, therefore facilitating an
examination of the influence of blockchain
technology on the field of auditing. The examination
of the possible economic impact of blockchain use
involved estimating the prospective growth rates of
income using financial reporting data from the
world's leading auditing firms. The concluding
phase of the study entails the identification of
constraints pertaining to the methodology and
execution of the conducted research on the
applications of blockchain technology in the job of
auditors. The findings derived from the performed
investigation were inferred.
3.2 Sample
The selected auditors were surveyed to identify the
features of blockchain applications in their work.
The sample consisted of 27 auditors from different
countries — Azerbaijan, Israel, and Jordan, with
different levels of professional experience — 1-2
years, 3-5 years, and more than 5 years. The sample
structure is presented in Table 1.
Table 1. Sample structure of auditors
Country
Number of
respondents
Professional experience
Azerbaijan
9
1-2 years - 3 respondents
3-5 years - 3 respondents
More than 5 years - 3
respondents
Israel
9
1-2 years – 3 respondents
3-5 years - 3 respondents
More than 5 years - 3
respondents
Jordan
9
1-2 years - 3 respondents
3-5 years - 3 respondents
More than 5 years - 3
respondents
Source: compiled based on author analysis.
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Mohammad Ahmad Alnaimat, Oleg Kharit,
Safar Purhani, Olena Symonenko,
Hanna Bratus
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The researched sample was formed by the
purposeful sampling method (Purposive Sampling
Method). This method contributes to the fact that
the studied sample of auditors has a diverse
representation of blockchain experience. The
respondents were selected based on their level of
professional experience, which varies from newly
employed to experienced professionals, as well as
different countries where they carry out their
professional activities.
Criteria of the studied sample:
1. Geographical distribution (Azerbaijan, Israel,
Jordan);
2. Level of professional experience (Junior
specialists: 1-2 years of experience, Mid-level
specialists: 3-5 years of experience; Senior
specialists: more than 5 years of experience).
The sampling procedure:
1. Identification of potential candidates: a list of
auditors who meet the research criteria was
obtained in cooperation with audit companies
and professional associations in each of the
selected countries. Personal recommendations
from researchers’ contacts were an additional
tool used to identify potential candidates.
2. Segmentation: Potential candidates are
segmented based on their professional
experience. Representation of each relevant
level of professional experience within each of
the selected countries was ensured within the
studied sample.
3. Random selection of candidates: auditors are
randomly selected from each segment, ensuring
appropriate geographic representation and
representativeness in terms of professional
experience.
4. Contacting the candidates: the researchers
contacted the selected candidates through
official communication channels to explain the
purpose, scope, and structure of the survey.
5. Consent to participate in the survey was
obtained.
6. The data were collected through semi-structured
interviews for a controlled and flexible survey
process. The survey questions covered the daily
experience of auditors, decision-making
processes, and trends in the development of
auditing under the influence of blockchain. The
interview lasted approximately 20 minutes and
was conducted using a secure Internet video
conferencing service. To facilitate maximum
participation, interviews were conducted at a
time convenient for the respondents. The
research complied with ethical standards,
ensuring the anonymity of respondents.
3.3 Methods
The features of the use of blockchain technology in
auditing were determined through economic and
statistical methods (trend analysis, in-depth semi-
structured interview, assessment of the economic
effect) applied to analyze key indicators related to
the use of blockchain technology in auditing and to
calculate the potential economic effect. A survey of
auditors was carried out in order to identify the
peculiarities of the use of blockchain in their work.
The survey was carried out using the method of
qualitative research, namely in-depth semi-
structured interviews with 27 auditors from
Azerbaijan, Israel, and Jordan, and different levels
of professional experience (1-2 years, 3-5 years,
more than 5 years). The structure and features of the
formation of the studied sample of auditors are
presented in more detail in the previous paragraph
— Sample.
The results of the interview are presented by the
following indicators: 1. Key changes in the
operational work of the auditor under the influence
of blockchain; 2. Key changes in the auditor’s IT
skills because of the blockchain use; 3. Key changes
in the auditor’s strategy under the influence of
blockchain; 4. New directions of auditor
development because of blockchain use. The
indicators are described in Table 2.
Table 2. Indicators used in the economic static
analysis of the key directions of changes in the
auditor’s work as a result of the blockchain use
Comment
The main consequences of
blockchain technology, which will
be reflected in the current auditor’s
work, % of respondents
Changes in required and desired IT
knowledge and skills of audit
company employees involved in
blockchain-based audits, % of
respondents
The main changes in the strategic
auditor’s work in terms of the
business model and the portfolio of
offered services due to the
blockchain use, % of respondents
Key innovative directions of changes
in the auditor’s work in the
operational, technological, and
organizational components, % of
respondents
Source: compiled based on, [23] [24], [25], [26], [27].
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Approach for sample indicators selection is
based on the approach of several major consulting
organizations and research institutes, in particular,
Anadolu University, [23], IAASB, [24], АІСРА –
СІМА, [25], ISACA, [26], EY, [27]. By
highlighting the operational, IT, strategic, and
innovative aspects, it provides a comprehensive
perspective on the areas of the profession that may
be most impacted by the technology.
MS Excel package was used in the research to
analyze sample data. The data were analyzed using
thematic analysis, a method that identifies, analyses,
and reveals patterns (themes) in the obtained data.
Limitations of this study include potential
interviewer mistakes or biases, as well as
respondents’ recall mistakes. Measures to overcome
the research limitations include the use of a
purposive sampling strategy and a focus on audit
professionals.
Purposive Sampling Strategy involves selecting
specific individuals for a study because they possess
characteristics or knowledge that make them
especially relevant to the research question. This can
help in gathering rich, detailed data from
participants who are most knowledgeable or
experienced about the subject. By focusing
specifically on audit professionals, the study
narrows down its scope and can draw from the
expertise and experience of this particular group.
This ensures that the data collected is both relevant
and informed. Summarizing and discussing with
colleagues, and checking participants were applied
in order to increase the validity and reliability of this
research. Summing up with the participation of
fellow researchers involves a discussion of the
research process and the results obtained. By
discussing findings and interpretations with fellow
researchers, potential biases or misinterpretations
can be identified and rectified. This collaborative
approach can increase the objectivity and robustness
of the analysis. Participant validation involves
presenting results to participants to verify their
accuracy. Participant validation encompasses
presenting the findings back to participants to
ensure that the researchers' interpretations align with
the participants' intended meanings. This can help in
validating the accuracy of the results and in
enhancing the trustworthiness of the research.
4 Results
The dynamics of the market for blockchain-based
technological solutions show stable growth over a
long period of time. This is reflected in the
dynamics of financing volumes of investment deals
in the field of blockchain, [28]. The data are
presented in Figure 1.
The trends in blockchain project financing and
the number of transactions in the blockchain field
from 2018 to 2022 will be analyzed. As regards
blockchain project funding, the dynamics of
financing volumes show a downward trend from
2018 to 2020, decreasing from $4.9 billion in 2018
to $3.2 billion in 2019 and 2020. However, in 2021
we see a significant increase in funding to $25.7
billion, or an annual increase of more than 800%,
which indicates a significant surge in interest and
investment in blockchain technology. The trend of
increasing financing volumes continued and
amounted to $26.8 billion in 2022.
Fig. 1: Global blockchain funding and deals dynamics, USD billion, number of deals, 2018-2022
Source: compiled based on CBInsights data, [28].
2018 2019 2020 2021 2022
Blockchain funding, USD bln 4,9 3,2 3,2 25,7 26,8
number of deals in Blockchain 917 910 713 1423 1828
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0,0
5,0
10,0
15,0
20,0
25,0
30,0
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There is also an upward trend in the number of
blockchain transactions. The trend analysis showed
that the number of transactions in the blockchain
sector largely reflects the financing trend. The
number of transactions decreased from 917 in 2018
to 713 transactions in 2020. However, the number of
deals further increased significantly in 2021 to 1,423
transactions, representing an annual increase of
199.6%. This trend continued in 2022 when the
number of transactions in the blockchain sector
further increased by +28.5% to 1,828 transactions.
After a period of declining interest in
blockchain in 2019 and 2020, a significant revival
of the dynamics of blockchain-based project
technology was recorded in 2021 and 2022. This
may indicate the growing interest and adoption of
blockchain technology, including environments of
professional services, in particular, audits. The
reasons for this trend can be connected to certain
drivers, e.g. increase in companies and economy
sectors realizing the potential of blockchain
technology, breakthrough achievements directly in
blockchain technology itself, and the growth of
consumer demand for blockchain-based solutions.
At the same time, the scale of cyberthreats,
which can be combated by blockchain technology
due to the use of its unique tools based on
decentralization, cryptography, identification, and
verification, is steadily growing. According to the
analytical platform Statista, [29], the average loss
from a data leak is $9.44 million for American
companies and organizations. At the same time, the
level of this indicator is steadily increasing during
the 15-year observation period of 2008-2022, as
Figure 2 demonstrates.
For the analyzed period, the data show a general
trend of increasing average costs caused by data
leakage. This is an increase of $3.0 million, or 1.47
times the level of data losses compared between
2022 and 2008. The mean expense associated with a
data breach has exhibited a consistent upward trend,
escalating from $6.4 million in 2008 to $9.4 million
in 2022. This figure denotes a mean yearly
expansion rate of 3.34%. Nevertheless, there have
been oscillations seen in the annual increase rate. As
an illustration, the financial implications of a data
breach showed a decline of 24% in 2012, followed
by a subsequent increase of 8.3% in 2014.
The data shows a definite upward trend in data
breach costs for businesses, with rare year-over-year
declines. This growing trend underscores the need
for proper cybersecurity measures and policies in
companies and organizations. That also
encompasses the need for relevant audit IT
infrastructure, supporting blockchain-related
change.
The needs and opinions of sampled auditors
were studied considering the identified trends in the
development of auditing under the influence of
blockchain. Interviewing a sample of auditors
revealed that the auditors consider the impact on the
operational work of auditors as the priority area of
the impact of blockchain. Accordingly, the auditors
need to improve the component of IT skills. It is
also necessary to change internal regulatory
documents and audit methodology to consider the
impact of blockchain. According to the auditors,
there is a real potential for real-time audits.
Moreover, according to the respondents, it is
possible to improve the complex audit services with
high added value in terms of more effective
detection of fraud and consulting on the accounting
of digital assets. Figure 3 presents the results of the
study.
Fig. 2: Average cost of a data breach for U.S. companies and organizations, USD mln, 2008-2022
Source: compiled based on Statista data, [29].
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Average cost, USD mln 6,4 6,7 6,8 7,2 5,5 5,4 5,9 6,5 7,0 7,4 7,9 8,2 8,6 9,1 9,4
Growth rate, % 4,7% 4,7% 1,4% 7,3%-24,0%-1,8% 8,3% 11,6% 7,4% 4,9% 7,6% 3,5% 5,5% 4,7% 4,3%
-30,0%
-25,0%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
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Hanna Bratus
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Fig. 3: Key priorities in Audit due to Blockchain impact – Interview research results for a sample of auditors
concerning changes in Audit due to Blockchain, % of respondents, 2022
Source: compiled based on sample data.
The presented table illustrates the primary focal
points within the field of audit, specifically in
response to the influence exerted by blockchain
technology. The priorities have been arranged in
accordance with the proportion of participants who
expressed the significance of each priority. Notably,
the highest-ranked priorities are “Changes in audit
operations due to blockchain” and “IT-skills
enhancement due to blockchain”. The obtained data
illustrates the substantial influence of blockchain
technology on the field of audit. Most participants
expressed the significance of directing attention
toward modifications in audit operations,
information technology competencies, and audit
methodology. The reason for this is attributed to the
nascent and dynamic nature of blockchain
technology. Thus, auditors must modify their audit
methodologies to adequately evaluate the risks and
controls inherent in blockchain-based systems and
transactions.
It is noteworthy to mention that a considerable
proportion of respondents (44.4%) hold the belief
that blockchain technology would empower auditors
to deliver audit services with additional value. Thus,
auditors perceive blockchain as a potential avenue
for enhancing the caliber and effectiveness of their
audits, while also offering novel and inventive
offerings to their clientele.
In summary, the conclusion is that this set of
changes in the auditor’s work due to the use of
blockchain can be considered as a real guide to
actions when forming a plan for changes in the work
of audit companies and plans for adaptation to the
new technological environment for the short- and
long-term.
The use of blockchain in audit processes can
cause changes in the financial results of audit
companies. Economic and statistical analysis of
financial reporting data of the 4 world's largest
auditing companies revealed the potential economic
effect of using blockchain (Table 3).
Table 3. The forecasted economic effect of
Blockchain implementation in audit
indicator
Deloitte
PwC
EY
KPMG
Revenue for 2022,
USD bln
59.3
50.3
45.2
34.6
Compound Annual
Growth Rate, %
6.5%
3.9%
5.4%
3.7%
Scenario Analysis for Blockchain impact on forecasted
Revenue growth for 2023-2025, %
Best Case Scenario,
(+4 p.p. growth), %
10.5%
7.9%
9.4%
7.7%
Base Case
Scenario, (+2 p.p.
growth), %
8.5%
5.9%
7.4%
5.7%
Worst Case
Scenario, (0 p.p.
growth), %
6.5%
3.9%
5.4%
3.7%
Source: compiled based on Statista data, [30].
According to the basic scenario, the 4 largest
audit companies expect an average annual growth
rate of 6.9% from the use of blockchain. In
monetary terms, this economic effect amounts to an
average revenue of $72.1 billion per company as of
the forecast year of 2025.
Summing up, we should note that in terms of
improving the auditor’s work through the use of
blockchain, it is important to pay attention not only
to the potential for a significant transformation of
Changes in
Audit
operations due
to Blockchain
IT-skills
enhancement
due to
Blockchain
Audit
methodology
changes due to
Blockchain
impact
Real-time Audit
Value-Added
Audit Services
due to
Blockchain
key priorities in Audit due to Blockchain
impact 88,9% 88,9% 77,8% 55,6% 44,4%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
90,0%
100,0%
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Hanna Bratus
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audit methods but also to the prerequisites for the
effective adoption and use of blockchain
technology. This transformational transition to
blockchain-based auditing must be appropriately
managed to meet the needs of auditors and audit
company clients. An additional serious challenge is
the provision of adequate professional training and
education of auditors, which shall help stakeholders
understand and adapt to developing technologies, in
particular, blockchain technology.
5 Discussions
The present analysis aims to elucidate the precise
implications of blockchain technology in the field of
auditing, with particular attention given to the
problems and possibilities encountered by the
primary stakeholders involved. The results collected
will be discussed in more depth.
This research suggests that the utilization of
blockchain technology is crucial in facilitating
transformative shifts in traditional auditing
methodologies. Technological advancements have a
significant influence on both the operational and
strategic aspects of the auditing process. This
assertion is supported by the findings of several
prior investigations. The focus of this study is to
examine the efficient utilization of blockchain
technology in the context of audit and back-office
services, [1]. This premise is supported by a
previous study, [2], which investigated a
blockchain-based auditing method designed to
preserve the integrity of large-scale data. This
notion of blockchain-based transparent auditing,
emphasizing security and transparency, was further
substantiated in, [4], [31]. The findings of this study
are corroborated by a previous study, [6], which also
explores the utilization of blockchain technology for
safe, decentralized, and automated auditing
techniques. This thesis is supported by a study
conducted by the authors, [8], which specifically
examines the topic of audit compliance in the
context of blockchain technology.
This research study centers on the utilization of
blockchain technology within the field of auditing,
exploring many potential applications and scenarios.
This study investigates certain circumstances
pertaining to the application of the technology. This
study identifies the primary advantages of utilizing
blockchain technology to streamline and automate
audit procedures. The decentralized nature of
blockchain allows for the establishment of a safe
and transparent accounting system, which has the
potential to greatly enhance the efficiency of the
audit process. The finding is substantiated in
reference, [9], which pertains to the utilization of
blockchain technology in the field of auditing,
specifically in the context of risk analysis and
management. The authors in, [10], [32], [33], offer
further validation by examining the effects of
blockchain technology on the field of auditing,
specifically focusing on security. The study explores
the potential opportunities and challenges that arise
in the daily routine of auditors due to blockchain,
and consequently, the necessary data security
management skills that auditors must acquire in
response to these effects. Further validation of the
chosen outcome in this research is provided by a
previous investigation, [11], which examined a
public audit system utilizing blockchain technology.
This analysis focused on the technological attributes
of blockchain and its implications for information
security within the audit domain. This discovery is
further substantiated by a study that investigated a
distributed auditing system based on blockchain
technology, with the aim of enhancing transparency
and dependability in network management systems.
Previous researchers, [18], [34], corroborate the
findings pertaining to the utilization of blockchain
technology for the purpose of conducting public
audits on large-scale data stored in cloud
environments.
In contrast to previous research, the present
study specifically underscores the necessity for a
comprehensive and thorough examination of
auditors' requirements for the modifications arising
from the influence of blockchain technology on
their professional responsibilities. This research
centers on the significance of conducting a
comprehensive examination of the requirements of
auditors within the framework of alterations
resulting from the influence of blockchain
technology. Moreover, this research examines the
prospective economic impact on the long-term
expansion of audit firm revenues considering the
influence of blockchain technology. This is
significant in terms of justifying auditors'
commitment to investing in the advancement of
these ground-breaking technologies.
6 Conclusions
This research indicated key development areas of
blockchain technology for the auditors, both in
terms of operational work and strategic tasks. This
task is difficult due to the wide influence of the
technological factor on the change in the work
approaches of client companies and auditors, as well
as uncertainty in terms of blockchain regulation and
WSEAS TRANSACTIONS on INFORMATION SCIENCE and APPLICATIONS
DOI: 10.37394/23209.2023.20.39
Mohammad Ahmad Alnaimat, Oleg Kharit,
Safar Purhani, Olena Symonenko,
Hanna Bratus
E-ISSN: 2224-3402
371
Volume 20, 2023
new auditing standards due to changes caused by the
influence of blockchain.
Blockchain technology usage requires the
adaptation of auditors who will face the
consequences of its influence on their professional
activities. The study of the needs of auditors in the
context of the use of blockchain revealed the need
for changes in the operational work of auditors
(88,9% of respondents), as well as improvement of
IT competencies (88,9% of respondents) and audit
methodology (77,8% of respondents). In strategic
terms, there is a potential to apply audit tools in
real-time and provide services with higher added
value, for example, more effective fraud detection,
and consulting on the accounting of digital assets.
These changes lead to a potential economic effect
from the use of blockchain by auditors. According
to estimates of the impact of blockchain for the 4
largest audit companies in the world under the basic
scenario, an average annual growth rate of 6.9% is
expected for the period 2023-2025. This economic
effect is an average income of $72.1 billion per
audit company for the projected 2025.
Future research will be concerned with the
analysis of directions of strategic and operational
changes in auditing under the influence of
blockchain in the audit methodology and
organizational structure of audit companies.
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Contribution of Individual Authors to the
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problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflicts of interest to declare.
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WSEAS TRANSACTIONS on INFORMATION SCIENCE and APPLICATIONS
DOI: 10.37394/23209.2023.20.39
Mohammad Ahmad Alnaimat, Oleg Kharit,
Safar Purhani, Olena Symonenko,
Hanna Bratus
E-ISSN: 2224-3402
374
Volume 20, 2023