Question

Data Analytics Accounting

Define Blockchain. Describe the three important facets of Blockchain. How does Blockchain impact Audit?

Answer 1

Data Analytics Accounting is concerned with analyzing the data by applying analytical tools and sciences to solve and find out solutions to accounting problems.

Blockchain is a reformed accounting technology which keeps a record of obligations by transferring the ownership of assets and maintain efficiency in the accounting system to present true and fair value of financial information.

Three facets if Blockchain can be described as below:

1. Propagation – when new transactions are posted they directly go into the identical ledgers without any central control. It transfers copies to all the participants itself.

2. Permanence – transactions posted in the Blockchain remain their for permanent time and cannot be edited without the consent of the majority participants. No one has the right to make changes in the transactions.

3. Programmability – Blockchains are programmable and can be adjusted to make automatic transactions.

Blockchains have proved to be a successful tool for auditing as they are efficient to work on and provide efficient results too. Their feature of permanency disregards any changes or alterations and this can prove to be very useful for audit process as it would enable auditor to have correct and original information.