Triple entry ledgers with blockchain for auditing

Abstract

Legislation generally requires public agencies to account for their activity to the public. Among the many duties imposed by legislatures around the world are requirements for transparency in procurement of services, budgeting and presentation of accounts. However, agencies in countries with high corruption problems have trouble complying with the legislation, especially in smaller agencies. Moreover, it is typically infeasible for national auditors to audit all the accounts rendered, and instead, they select a small sample for audit based on their level of risk. Another problem is that the presentation of accounts occurs once a year for all agencies, leading to a seasonal demand with significant lag time between auditing and accounting period. In this study, we present a non-technical framework based on the emerging technology of blockchain that could be a solution to all these concerns. We apply it within the context of Brazilian legislation and the Federal Court of Accounts of Brazil (TCU), although the proposal is applicable across a wide range of countries facing severe corruption.

Triple Entry Bookkeeping di Era Teknologi Blockchain: Suatu Kajian Literatur

“…Smart contract juga bertindak sebagai kontrol otomatis yang memonitor alur proses akuntansi berdasarkan aturan yang sudah ditetapkan. Blockchain dan smart contract dapat menjadi kendali dalam menyimpan dan mentransfer data ataupun informasi akuntansi baik internal maupun eksternal yang relevan secara aman kepada stakeholder (de Oliveira Simoyama et al, 2017;Maiti et al, 2021;Hartoyo et al, 2021). Triple entry bookkeeping yang diintegrasikan dengan blockchain mampu menghasilkan laporan yang real-time dan secara langsung menyiarkan informasi akuntansi kepada para stakeholders seperti manajer, auditor, kreditur, pemegang saham, mitra bisnis, lembaga pemerintah, dan pemangku kepentingan lainnya (Hartoyo et al, 2021) .…”

Analysing the Potential of Blockchain for the Accounting Field in Indonesia

“…This model gives too much capacity to publishers which can be a strong candidate for internal fraud. To reduce recording mistakes, data manipulation, and the potential of publisher fraud, the accounting tripleentry model guarantees all parties to have similar information, there will be no parties allowed to enter invalid information [16].…”