Blockchain and Audit Assertions (Completed)

As blockchain technology gains traction across industries, its implications for financial reporting and audit practices are becoming increasingly significant. There are important questions being raised about how assertion-based auditing may be impacted by the introduction of blockchain technology into financial reporting This workshop introduces the foundational principles of blockchain and smart contracts, exploring how distributed ledger systems may alter traditional audit assertions and reshape auditor perceptions of risk. Participants will examine challenges such as verifying digital representations of physical assets, managing private key access, and assessing the reliability of blockchain-based audit trails. The session also considers how crypto assets, and smart contracts intersect with audit procedures, highlighting both the opportunities for automation and transparency, and the risks of over-reliance and automation bias.

Who Should Attend
Professionals in public practice, business, government, and education who wish to be knowledgeable about blockchain-enabled environments and the impact on the audit.

Topics Covered

• The core principles of blockchain technology and its implications for audit trails in accounting.
• How blockchain ensures transparency and immutability, revolutionizing the reliability of financial records.
• Strategic considerations and challenges associated with implementing blockchain-based audit trails.

Learning Objectives

• Describe the foundational principles of blockchain technology and smart contracts, and their relevance to financial reporting and audit processes
• Evaluate how blockchain-enabled environments may influence auditor perceptions of inherent and control risk, particularly in assertion-based auditing
• Analyze the challenges auditors face in verifying digital representations of physical assets and managing private key access within blockchain systems
• Interpret the implications of cryptocurrency and stablecoin transactions on audit procedures, financial statement presentation, and regulatory compliance
• Assess the potential of blockchain to enhance audit trails, transparency, and data integrity, while identifying limitations and areas requiring professional skepticism

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Information Technology (2 hours)

Program Prerequisites
Basic understanding of accounting and audit standards.

Advance Preparation
None