Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability

Liu, M., Robin, A., Wu, K., & Xu, J. (2021). Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability. Journal of Emerging Technologies in Accounting.

36 Pages Posted: 30 Nov 2021

See all articles by Manlu Liu

Manlu Liu

Rochester Institute of Technology (RIT) - Saunders College of Business

Ashok Robin

Rochester Institute of Technology (RIT) - E. Philip Saunders College of Business

Kean Wu

Rochester Institute of Technology (RIT) - Saunders College of Business

Jennifer Xu

Bentley University

Date Written: October 31, 2021

Abstract

We use the transaction cost theory, originally proposed by Coase (1937), as a theoretical framework to examine the potential impact of the blockchain technology on accounting and auditing processes in terms of information timeliness, information quality, and auditing costs. Since a blockchain enables recording, tracking, and managing business transactions and assets of firms, it offers natural advantages to accounting and auditing processes, and has the potential to lower various transaction costs. A use case on a supply chain of food products is presented to illustrate how a blockchain can be used to trace the movement of goods and record the related transactions. Subsequently, building on this scenario, we use the transaction cost framework to generate propositions related to accounting and auditing that can be empirically tested in future studies as data become available.

Keywords: blockchain; hyperledger; supply chain traceability; transaction cost theory; accounting and auditing

JEL Classification: D83, G14, M41, M42, O33

Suggested Citation

Liu, Manlu and Robin, Ashok and Wu, Kean and Xu, Jennifer, Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability (October 31, 2021). Liu, M., Robin, A., Wu, K., & Xu, J. (2021). Blockchain’s Impact on Accounting and Auditing: A Use Case on Supply Chain Traceability. Journal of Emerging Technologies in Accounting., Available at SSRN: https://ssrn.com/abstract=3973255

Manlu Liu

Rochester Institute of Technology (RIT) - Saunders College of Business

105 Lomb Memorial Dr.
Rochester, NY 14623
United States

Ashok Robin

Rochester Institute of Technology (RIT) - E. Philip Saunders College of Business ( email )

105 Lomb Memorial Dr.
Rochester, NY 14623
United States

Kean Wu (Contact Author)

Rochester Institute of Technology (RIT) - Saunders College of Business ( email )

Saunders College of Business
105 Lomb Memorial Drive
Rochester, NY 14623-5608
United States

Jennifer Xu

Bentley University ( email )

175 Forest Street
Waltham, MA 02452
United States

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