Within the financial transparency and auditing sector, blockchain technology is re-inventing transaction-based verification, since it has shifted towards the concept of decentralized, permanent and real-time verifications in transactions. This innovation will drive greater trust, less fraud, and more compliance as audit trails become tamper proof, as processes are automatized in terms of smart contracts, and can be audited continuously. The most notable applications are fraud prevention, anti-money laundering (AML) tracking and supply chain transparency, with scalability, legal uncertainty and privacy concerns still being a problem. With such widespread adoption, blockchain is the oft-rewarded path to a more efficient, provable ecosystem of money and many forms of finance, paired with AI and central bank digital currencies (CBDCs). This paper is going to discuss the effect of blockchain on auditing, its advantages, limitations, and the future of blockchain in transforming financial accountability.
Hosapeti et al. (Tue,) studied this question.