Abstract
With the rapid evolution of blockchain technology, there is a gradual shift in the way that financial transactions and information is recorded, processed, and stored, prompting a change in how external audit firms will operate. Blockchain technology uses decentralisation and immutability, which will introduce potential opportunities and challenges for the external audit process. The purpose of this study is to explore how blockchain technology can impact the traditional external audit process by optimising data reliability, transparency, and security. Through an extensive review of literature, this research study examines the impact of blockchain technology on external audit efficiency, accuracy, and fraud detection.
Key findings indicate that blockchain technology minimises the need for transaction verification by the external auditors, which essentially shortens the external audit cycle and ultimately reduces the cost of external audits. However, blockchain technology results in complexities regarding the skill requirements of external auditors, data privacy, and ethical and regulatory considerations.
This study concludes that whilst blockchain technology offers promising enhancements in the external audit process, its implementation necessitates a redefined role for external auditors and enhanced ethical and regulatory guidance to ensure effective execution.