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An internal auditor’s guide to auditing blockchain

Blurring the line between physical and digital

Blockchain seems to be on every businessperson’s lips these days. But what is it, how will it reshape the way organizations operate, and how will it affect the roles and responsibilities of internal audit? In this three-part series, we address the fundamentals of blockchain, blockchain risks, and considerations for auditing blockchain environments.

What is blockchain?
It’s a protocol that allows entities to store and share transactional information in a controlled and systematic way.

An introduction to blockchain

Blockchain is poised for a transformational impact on the business world, and many organizations are already moving forward with the technology. As interest intensifies and blockchain becomes more integral to company operations, internal audit will need to be well-versed not only in how blockchain works, but also in what potential risks it may introduce to business processes and how to approach auditing blockchain environments.

In the first installment of a three-part series we introduce internal auditors to the fundamentals of distributed ledger technology, how blockchains work, key features, and types of blockchains, as well as new concepts such as smart contracts, tokens, initial coin offerings (ICOs), and cryptocurrencies.

About our auditing blockchain series

While blockchain may be the next step in the digital evolution, specific implementations of the technology are still susceptible to risk. This will call for internal audit to play a pivotal role in not only providing traditional assurance, but also acting as a trusted business advisor in anticipating and evaluating these new and emerging risks. Our three-part series is designed to help internal auditors fulfill this role. Stay tuned for future installments:

  • Part two: Risk considerations in blockchain. The variety of risks that organizations are exposed to when implementing blockchain technology.
  • Part three: Auditing blockchain environments. What makes auditing in a blockchain environment unique.

Our blockchain services

Deloitte helps companies worldwide explore every aspect of blockchain and build tailored solutions designed to deliver value. Through our ecosystem for education, ideation, strategy, prototyping, and development, clients are able to harness the opportunities and capabilities that blockchain technology provides. Learn more about Deloitte’s insights on blockchain, as well as the services we offer.

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Get in touch

Prakash Santhana
Deloitte Risk and Financial Advisory 
Blockchain lead
+1 212 436 7964
 

Manu Mankad
Deloitte Risk and Financial Advisory 
Internal Audit Blockchain lead
+1 415 783 4298

Seth Connors
Deloitte Risk and Financial Advisory
Blockchain Fellow
+1 313 394 5139
 

Rajat Bhattacharya
Deloitte Risk and Financial Advisory
Senior Manager
Internal Audit
+1 415 783 5147
 

Amitesh Joshi
Deloitte Risk and Financial Advisory
Specialist Master
Internal Audit
+1 213 996 4862
 

 
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