The prevalence of cryptocurrency makes us consider ways and progress that will guarantee their openness to ordinary people. While the cryptocurrency markets are in turmoil, the industry continues to build and move forward with exciting new developments.
Organizing Auditchain is leading the development of the world’s first decentralized continuous audit and real time financial reporting protocol ecosystem for digital asset and enterprise assurance and disclosure. Our goal to enables continuous external validation of enterprise system and control, financial data and disclosure control environments by a network of CPAs and Chartered Accountants. The DCARPE Alliance is an accounting, audit and financial reporting consortium consisting of CPAs, Chartered Accountants, enterprise software providers and developers who are contributing resources to the development and driving adoption of the DCARPE Assurance and Disclosure Protocol. And we believe that Organizing Auditchain can strengthen it with a right and reliable framework.
INTODUCTION
Self-auditing state of a distributed ledger and the validation of transactions frst occurred on January 4, 2009 with the launch of the genesis block of the Bitcoin blockchain. Continuous audit is evolving in theory and practice. Its practice is limited mainly to internal reporting controls. The application of jurisdictionally compliant accounting treatment to transactions and reporting system risk controls occurring in most business processes is now theoretically possible concurrently within and subject to a decentralized continuous audit environment pursuant to SSAE 18 and IASE 3402 standards through the use of confgurable “Ricardian” type smart contracts. Such contracts, as proposed in this paper, do not hold custody of value but instead execute commands for how legal conditions and value are treated based on a fxed or evolving arrangement.
Auditchain proposes to embody an ecosystem that includes a blockchain protocol and an open source library of accounting smart contracts sufcient to capture, process, audit and report enterprise data and performance data on a real time continuous basis under a continuous independent audit exceeding current accounting, audit and control standards. A public facing and/or permission based presentation layer proposes to render in real time, at the close of every block; balance sheet, income statement, cash fow and statement of changes in stockholders’ equity reports that has the capacity to far exceed the reliability of existing reporting standards.