The Impact of Blockchain Technology on Internal Auditing in the Financial Sector

Abstract

Blockchain technology is claimed to lead innovations to many business paradigms by reducing fraud and providing safe transactions. This study examined whether the adoption of blockchain technology will impact their internal audit function (IAF) and the role of IAF in blockchain smart contracts in the financial sector. The study referred to the related literature review and followed the international standards for the professional practice of internal auditing (IPPF). The study found that internal audit function and relative associate with the basics of blockchain technology and reached a continuous audit model with blockchain smart contracts. Considering the significant benefits and also potential challenges of applying blockchain technology in the modern accounting system, the study filled a gap in knowledge on the impact of blockchain on internal auditing.