ICAI to adopt use of blockchain tech in auditing

Today, blockchain technology, considered one of the safest and most secure mechanisms for recording information and financial transactions, will become part of the Institute of Chartered Accountants of India (ICAI). The supreme body of chartered accountants ICAI has announced its decision to examine the use of blockchain technology in auditing.

“Artificial intelligence and blockchain technology will be the focus of new technology. We will explore how blockchain can be used in auditing,” said new President Debashis Mitra. PTI.

The technology will be the focus of the Institute of Chartered Accountants of India (ICAI) as it not only hinders but also creates opportunities, Mitra said.

Blockchain technology is the concept behind the operation of the blockchain – the blockchain is a fixed digital accountant. Transactions or entries in a book that are stored separately are called “blocks,” and the information in the block is usually associated with the information in the previous block. This over time forms a chain of transactions, which is what the word blockchain refers to.

Mitra said ICAI’s decision to introduce an peer review mechanism for certain categories of firms that provide assurance services to certain classes of organizations would significantly improve the quality of the audit.

Implementation will begin in stages from April 1 with practical units that have conducted a statutory audit of companies in which equity or debt securities are listed in India. Over the next three years, the deployment will continuously cover firms that provide assurance services to unlisted companies.

Mitra also said that the Institute’s recently launched audit maturity model, version 1.0 (AQMM v1.0), would help individual entrepreneurs and audit firms assess their current level of audit maturity, identify areas where competencies are lacking, and develop a roadmap to achieve higher levels of maturity.

“ICAI seeks to be a partner in achieving the UN Sustainable Development Goals (SDGs) for 2030 and to strengthen the country’s reporting sustainability ecosystem,” he said.

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