Blockchain Technology: ICAI to Implement Blockchain Technology in Auditing

Blockchain technology, widely regarded as one of the safest and most secure information-recording and financial transaction technologies available today, will now be integrated into the Institute of Chartered Accountants of India (ICAI). The Institute of Chartered Accountants of India (ICAI) has stated its intention to investigate the use of blockchain technology in auditing.

“Among developing technologies, artificial intelligence and blockchain technology will be the spotlight. We will investigate how blockchain may be used in auditing,” said PTI’s new president, Debashis Mitra.

According to Mitra, technology would be a significant focus of the Institute of Chartered Accountants of India (ICAI) because it not only disrupts but also generates opportunities.

Blockchain technology is the principle that underpins the blockchain’s operation – a blockchain is an immutable, distributed digital record. A “block” refers to the individual transactions or entries on the ledger that are maintained on the ledger, and the information in a block is frequently linked to the information in a previous block. This establishes a chain of transactions over time, which is what the term blockchain alludes to.

Mitra believes that the ICAI’s move to implement a peer review process for certain categories of organisations providing assurance services to particular classes of entities will help to improve audit quality.

The staggered implementation will begin on April 1 with practise units that have completed a statutory audit of firms with equity or debt securities listed in India. The deployment would gradually embrace organisations providing assurance services to unlisted companies over the next three years.

Furthermore, Mitra stated that the institute’s recently released Audit Quality Maturity Model – Version 1.0 (AQMM v1.0) will assist sole proprietors and audit firms in self-assessing their current level of audit maturity, identifying areas where competencies are lacking, and developing a roadmap for achieving a higher level of maturity.

“ICAI is committed to becoming a partner in attaining the United Nations Sustainable Development Goals (SDGs) 2030 Agenda and strengthening the country’s sustainability reporting ecosystem,” he said.