Eric Mantelaers
ABSTRACT
The current standard in accounting practice is the double-entry approach. Basis of the double-entry approach is that every financial event brings two equal and offsetting entries. Since these financial events are not automatically confirmed by both parties, the accounting quality can be improved. The blockchain mechanism possibly offers a different take on accounting. Based on an experimentation approach, data was collected to compare the double-entry method with the blockchain-based triple-entry method. The results show that the main difference concerns determining the completeness of the financial statement items. In the situation of double-entry accounting, segregation of duties is applied to do so. In the blockchain situation, the underlying mechanism of the blockchain already ensures this.
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Index Terms
- The Impact of Blockchain on the Auditor's Audit Approach
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