The purpose of this study is to examine the impact of blockchain technology on accounting, auditing, and assurance practices. For this purpose, the relevant national and international literature on the accounting, auditing, and assurance practices of blockchain technology has been reviewed. As a result of the research, the advantages and disadvantages of blockchain technology were evaluated and categorized. As a result of the study, it has been determined that the blockchain technology has a great effect on accounting, auditing, and assurance.
TopIntroduction
Technological developments are rapidly reflected in the business world. At this point, businesses must adapt to new technologies and change their way of doing or working. Technological developments have undoubtedly affected the fields of accounting and auditing, as in all fields. Especially in the field of accounting and auditing, it is important how the applications should be made in terms of ensuring data security and using blockchain technologies in these areas.
Although its legal regulations and standards have not yet been clearly defined, blockchain is a technology that is developing rapidly all over the world, is closely watched by both the public and private sectors and is expected to cause radical changes in current business processes (Karahan and Tufekci, 2019).
With blockchain technology and cryptocurrencies occupying the agenda of the economic world more and more each day, the rules of accounting and auditing are being rewritten at the same time. Blockchain technology is a distributed system of records with an ever-growing database called blocks, which is not dependent on a central authority in general (Kizil and Hanisoglu, 2019).
Blockchain technology facilitates accounting transactions, enables real-time reporting and real-time auditing (Alarcon and Ng, 2018). Blockchain technology has the potential to transform the accounting profession strongly and is expected to affect accounting with its functions, auditing, financial consultancy, professional ethics, and taxation (Gul, 2019).
Today, after the emergence of blockchain technology as a new research area, many researchers have conducted various studies on this technology. Researchers have based their studies mainly on conceptual analysis. Studies in the national literature are listed below.
In Guner (2021)'s study, it was aimed to determine the perceptions about the usability of blockchain technology in accounting processes and to develop a scale to determine these perceptions. The data used in the study were collected from 121 academicians working as faculty members in the field of accounting in Turkey through a questionnaire prepared. Confirmatory factor analysis (CFA) was performed to evaluate the reliability and validity of the developed scale. The CFA results revealed that the developed scale consists of a 5-dimensional structure: “transparency”, “low cost”, “efficiency and safety”, “audit” and “compliance with legislation” and that the proposed structure as a whole is valid and safe.
In Onay (2021)'s study, blockchain technology is discussed in terms of its regulatory implications, opportunities and implementation challenges. As a result of the research, it has been found that Turkish studies dealing with the relationship between auditing and blockchain, unlike similar studies in the English literature, touch on concepts such as the definition of cryptocurrencies and taxation problems.
In Sonmez and Demir (2021)'s study, the effects of technological developments, especially in the blockchain, on the management, transfer and transformation of digital assets in the accounting and finance sector are discussed.
In Kilinc (2020)'s study, blockchain technology was introduced and the effects of this technology in the field of accounting and auditing were discussed in detail. As a result of the study, it was underlined that with the development of blockchain technology, the presence of professionals with high technical knowledge will be needed, although the members of the profession will be able to perform their jobs more easily.
In Suekinci and Catikkas (2020)'s study, it has been tried to evaluate the possible effects of blockchain technology on the accounting registration process and tax revenues, which is the most important source of income for the public.
Dogan and Ertugay (2019), in their study, conceptually discussed the functioning of the blockchain, and its potential applications related to accounting. As a result of the study, the blockchain obstacles that will take time to overcome in front of their implementation are listed.
Gul (2019), in his study, conceptually examined the working principle of blockchain technology and its effects on the accounting information system.
In Karahan and Tufekci (2019)’s study, it is aimed to present a broader perspective on the potential effects of blockchain technology by mentioning the main features of the audit profession.