THE APPLICATION OF BLOCKCHAIN TECHNOLOGY IN ACCOUNTING AND AUDITING: EXPERIENCE OF UKRAINE AND KAZAKHSTAN

Abstract

Blockchain technology is widely used in accounting and auditing by powerful global manufacturers. Implementing blockchain in the enterprise increases the efficiency of accounting and auditing processes and system reliability, reducing the likelihood of errors and fraud. Some countries around the world, such as the USA and the United Kingdom, are actively using this technology in accounting and auditing. However, most countries are still in the early stages of implementing blockchain. In Ukraine and Ka-zakhstan, the modernization of accounting and auditing is gradually gaining momentum. One of the obstacles to the rapid development of blockchain is the lack of understanding of employees regarding the need to implement blockchain technology. The purpose of the study is to reveal the potential of blockchain in accounting and auditing by high-lighting its functional features and assessing the opportunities to improve the workflow of accountants and auditors. The article defined the structure of blockchain, its main functions, advantages and disadvantages, compared it with traditional methods of accounting and auditing. The possibility of implementing smart contracts as a blockchain application in enterprises was emphasized and a comparative analysis of the platforms on which they are implemented was carried out. The study identified both positive and negative consequences of the technology's implementation. It is emphasized that block-chain does not guarantee complete protection against fraud, and the occurrence of transaction errors can lead to significant financial losses. Nevertheless, blockchain can significantly improve the functionality of accounting and auditing systems if the rules are followed. Blockchain adoption in enterprises is fully consistent with Ukraine's digital transformation strategy and Kazakhstan's Sustainable Development vision, but it requires significant investment and high-quality staff training to be successful.