Assignment on Assurance and Corporate Governance

Running head: ASSURANCE AND CORPORATE GOVERNANCE
ASSURANCE AND CORPORATE GOVERNANCE
Name of the Student:
Name of the University:
Author Note:

ASSURANCE AND CORPORATE GOVERNANCE1
Audit Process
Blockchain technology is the series of time-stamped for data’s immutable records
which is managed by the computers that single entity does not own. Data’s every block is
bound with one another and secured by using the cryptographic principles. Technology of
blockchain does not have any central authority. This is definition for democratized system.
As it is immutable ledger and shared, information within this is open to anyone who want to
view it. Hence, anything which is created on the blockchain is transparent (Apte and
Petrovsky 2016). Everyone involved in it is accountable for own actions. No cost of
transaction is carried out by blockchain. Blockchain technology is simple though ingenious
way to pass information from a point to another in full automated manner.
Process is initiated by transaction through creating block. The block needs to be
verified by several computers distributed over the net, thus creating record that are unique
having history which are unique. Falsifying a single record means falsifying overall chain. It
is impossible virtually. This model is used by bitcoin for the monetary transactions, however
it could be deployed by using several other processes. At basic level, technology of
blockchain is just chain of the blocks literally. Blocks on blockchain technology are
generated on information’s digital pieces (Lemieux 2016). Information is stored by the blocks
about the transactions such as time and date. Information related to person taking part in
transactions is also stored within the blocks. Information which distinguishes the block from
the other blocks is stored within the blocks.
When a block stores a new block, this is added with blockchain. For block added
blockchain, few things should take place. A transaction should take place. Verification should
be done for the transaction. After purchasing something, the transaction should be verified.
With blockchain, the job of vetting the latest data entries is left for the network of the

ASSURANCE AND CORPORATE GOVERNANCE2
computers. Block must store transaction. After verification of transaction as accurate, it gets
permission. Hash should be given for each block. It should be given identifying, unique code
known as hash. Block is provided also latest block’s hash that is added with blockchain
(Zikratov et. al. 2017). After this is hashed, that block might be added with blockchain. When
there is addition of new block to blockchain, this becomes available publicly for viewing by
anyone. Anyone could view contents of blockchain, however the users could opt in
connecting the computers to network of blockchain.
Blockchains are also resistant to the stored data’s modification. A blockchain could
serve as distributed, open ledger which could record the transactions among two parties in
permanent and verifiable way. The blockchain is used as the source to verify the reported
transactions. For instance, where in spite of asking the clients directly for the statements of
bank or by sending the requests of confirmation to the third parties, the auditors could verify
easily transactions that are available publicly on blockchain ledgers. Verification process’s
automation would drive the cost efficiencies within audit environment (Fridgen et. al. 2018).
Days of the substantive testing based on sample would be challenged soon, as the authors
would resort into technology of blockchain for testing transactions’ whole population within
period of observation. Such extensive coverage would improve the assurance level drastically
gained in the affected engagements of audit.
Within blockchain technology, transaction of the low value takes 10 minutes
approximately for being validated as one block verification could be deemed. The more
elapsed the blocks are before the transaction could be considered as verified, that is, further in
chain, more related transactions could be immutable. Transaction of high value would take 1
hour approximately for verification. Contrasting with the financial traditional transactions
where the information could take up to months for clearance (Sutton and Samavi 2017). This
real-time pseudo verification characteristic of blockchain could impact process of audit also.