Blockchain can open the door to continuous financial control – Major legal affairs

Blockchain can initiate a practical and continuous monitoring of financial statements, but governments will carefully monitor their use to ensure that it does not interfere with their ability to collect taxes, according to the accounting professors.

The increasing use of shared data and blockchain makes continuous control more feasible because technology can detect transaction differences more quickly, Miklos Vasarhelyi, director of accounting at Reuters University, told the American Accounting Association on August 6th.

"Blockchain is perfect for continuous auditing because every moment you close a block is a time when you can collect data," Vasarhelyi said. Blockchain is becoming "very relevant" to accounting and auditing, he said.

However, "governments need taxes," Vasarhelyi said. "If they can not observe the transactions, they can not collect taxes, so you have to expect that most of the digital currencies suffer some form of government regulation."

Blockchain is a transaction logging mechanism in which transactions, particularly in cryptocurrencies, are stored securely and verifiably in data blocks of computer networks.

Blockchain "is just another technology that will interrupt the way we verify, why we verify" and the profession must become familiar with the operation and its potential, Shaun Budnik, an audit partner at KPMG LLP, he declared to the AAA.

Distributed Ledger Technology

The first thing that Jay Thibodeau, director of accounting and auditing curriculum at Bentley University in Waltham, Massachussets, stresses for his students on the potential impact of blockchain on auditing is " the more general term ", the technology of distributed ledgers," he said. "The reason I do this is to note the term & # 39; ledger & # 39 ;. So if you're an accounting professional and you're not worried about generalized accounting technology, I think you should be. "

A distributed ledger is a consensus of replicated, shared, and synchronized digital data across multiple sites. a central administrator or a centralized storage of data.

Vasarhelyi said that all supervisory authorities in the control of the European Union have launched "a large blockchain initiative" to understand their use and the implications for auditing All European large and medium-sized auditing firms have also "started something in blockchain".

European authorities and businesses are examining "all the angles", including the potential of blockchain for tracing "public records of real estate transactions in underdeveloped countries" "And using it to manage the stock exchanges, said Vasarhelyi.

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