The impact of new technologies on the connotation of audit profession

Abstract

Blockchain is increasingly conquering the finance sector. Blockchain technology enables a decentralized, distributed registry with durable and traceable data access in real time. Due to this, business processes are transforming. Currently the work of an auditor is predominantly retrospective and focuses on the accuracy and consistency of a company´s financial statements. Real-time data accessibility would alter this. The purpose of this paper is to understand how digital revolution affects audit profession. In this regard, the focus is emphasized fresh possibilities and associated difficulties. Research published in financial journals provide the foundation of this paper and shows, that many companies are consulting firms such as the Big Four KPMG or Deloitte on the potential impact of technological advances. There are preparations and accompaniments for the implementation of new technologies. Besides the literature review, a quantitative content analysis is elaborated. The analysis indicates, that well-known auditing firms and companies are actively investigating blockchain and are already launching the first initiatives to implement the new technologies. The relevance of Blockchain is noticeable present. However, there are uncertainties about the current legal framework and the rapid pace of change due to digital revolution. Thus, this research can add new dimensions on audit profession and, particularly, express the benefits and opportunities of Blockchain as part of the auditing process.