Blockchain Technology and Future of External Auditing; Opportunities and Threats

Abstract

The study empirically investigated the effect of blockchain technology on the future of external audit in Nigeria. Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using least squares regression model operated with E Views.12. Survey design was adopted and data for the study was obtained through the use of e questionnaire sent to the staff of Big4 audit firms in Nigeria. The results of the study reveal that the use of decentralized network and consensus mechanism have positive and significant effect on future of external audit in Nigeria. Based on this, the study concludes that blockchain technology ensures the future of external audit in Nigeria. Thus, it was recommended that the use of decentralized network in audit practices requires collaboration between different departments within the organization. Audit firms should therefore establish a cross-functional teams to drive the blockchain initiative, ensuring that all relevant stakeholders are engaged in the process. Also, audit firms should invest in consensus mechanism as the use of it ensures the future of external audit practices in Nigeria.