Blockchain is becoming more and more ingrained in the financial reporting sector, and this could mean new strategies for accounting and audit professionals. It is said that, this type of technology will have a significant influence on the future of auditing, and financial executives should be ready.
Blockchain in Auditing
As blockchain-based cryptocurrencies gain traction, CFOs are familiarizing themselves with the latest technology primarily in the payments and banking sector.
However, it’s only a matter of time until the technology bleeds into other areas of the financial industry and overhauls the traditional systems for auditing and accounting. Ultimately, it will influence how records are maintained, and value is transferred.
How Can Blockchain Help?
One of the most exciting things about it is the potential for transformative analytic capabilities. This could mean easier access to structured data which would, in turn, generate advanced analytics and hasten machine learning.
Ultimately, this could impact assurance audition by making the tools that professionals already use smarter and faster. It could mean more efficiency across the board.
Blockchain into the Future
It’s hard to determine how it will be adopted into the future, but the outlook is exciting. We are currently seeing a slow increase in how the sector is using blockchain, but there is a lot of potential. We may see it used for things such as deeds, titles, or even digital assets.
Keep in mind, once the information is out there, everybody can see it. Therefore, the progression of blockchain in accounting will be determined by how comfortable people are with sharing information.
Companies are currently working to identify the information that will be shared so that this technology can be appropriately scaled over time.
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