Blockchain-Enabled Auditing: A Conceptual Model for Financial Transparency, Regulatory Compliance, and Security

• Author(s): Emmanuel Damilare Balogun ; Kolade Olusola Ogunsola ; Adebanji Samuel Ogunmokun
• Paper ID: 1704358
• Page: 1064-1076
• Published Date: 30-04-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 6 Issue 10 April-2023

Abstract

This paper presents a conceptual model for integrating blockchain technology into financial auditing to enhance transparency, regulatory compliance, and security. Blockchain’s decentralized and immutable ledger system offers significant improvements over traditional auditing methods by ensuring real-time access to accurate financial data, reducing the potential for fraud, and ensuring that records are tamper-proof. Through the use of smart contracts and automated compliance checks, the model streamlines auditing processes, improves accuracy, and facilitates compliance with global financial regulations. Blockchain also enhances financial data security by leveraging cryptographic encryption and distributed consensus mechanisms, which protect against unauthorized access and tampering. The implications of this model are far-reaching, offering benefits for auditors, regulators, financial institutions, and the public, by fostering trust, accountability, and efficiency in financial reporting. However, challenges such as the technical complexity of implementation, scalability issues, regulatory hurdles, and the need for industry-wide standardization remain. The paper suggests avenues for future research, including integrating artificial intelligence and machine learning with blockchain, developing scalable blockchain solutions, and further regulatory analysis to create a global framework for blockchain-based auditing. The proposed model aims to revolutionize the auditing landscape, ensuring a more secure, transparent, and compliant financial system for the future.

Keywords

Blockchain Technology, Financial Auditing, Transparency, Regulatory Compliance, Security, Smart Contracts

Citations

IRE Journals:
Emmanuel Damilare Balogun , Kolade Olusola Ogunsola , Adebanji Samuel Ogunmokun "Blockchain-Enabled Auditing: A Conceptual Model for Financial Transparency, Regulatory Compliance, and Security" Iconic Research And Engineering Journals Volume 6 Issue 10 2023 Page 1064-1076

IEEE:
Emmanuel Damilare Balogun , Kolade Olusola Ogunsola , Adebanji Samuel Ogunmokun "Blockchain-Enabled Auditing: A Conceptual Model for Financial Transparency, Regulatory Compliance, and Security" Iconic Research And Engineering Journals, 6(10)