How Will Blockchain Technology Impact Auditing and Accounting? Permissionless vs. Permissioned Blockchain
Liu, M., Wu, K., & Xu, J. (2019). How Will Blockchain Technology Impact Auditing and Accounting: Permissionless Vs. Permissioned Blockchain. Current Issues in Auditing.
18 Pages Posted: 12 Sep 2019
Date Written: July 8, 2019
Blockchain offers a drastically new way to record, process, and store financial transactions and information, and has the potential to fundamentally change the landscape of the accounting profession and reshape the business ecosystem. In this article, we introduce two types (i.e. permissionless and permissioned) of blockchain and layout their technological features. We further discuss implication of blockchain to auditing and elaborate opportunities and challenges of two types of blockchain to auditors. We conclude by making specific recommendations for auditors to adapt, adjust, and elevate themselves to the role of strategic partners in blockchain implementation.
Keywords: permissionless blockchain, permissioned blockchain, internal control, auditing, accounting
JEL Classification: M15, M41, M42, O14, O33, O55
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