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A proposed purchase cycle audit approach using blockchain technology to increase audit effectiveness and reduce fraud
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- Author(s) / Creator(s)
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Over the years, purchasing cycle fraud schemes have been the greatest risks of fraud for most organizations. Blockchain technology can maintain transactional data with full decentralization and reducing the growing number of cases of fraud in companies and organizations. This paper focuses mainly on the effectiveness of a blockchain-based system in enterprise procurement. It aims to create an audit template aimed at further preventing purchasing cycle fraud and enabling audit effectiveness in the purchase cycle sector through the implementation of triple entry accounting. This can be achieved by continuing previous research on blockchain accounting and discover how the technology if implemented, could influence the reduction of high audit cost and fraud detection in organizations. The literature review is carried out based on peer-reviewed publications and related professional literature. The current purchase cycle approach takes over 12 steps to complete a cycle that sometimes presents significant challenges such as insufficient lead time, management apathy etc. Blockchain's introduction into the purchase cycle will help standardize business processes, improve efficiency, and reduce operating costs. Blockchain network offers a confidential environment where transactions are not dependent on a centralized authority. The general assumption is that blockchain would help decrease fraud and errors, mitigate transit and delivery costs, reduce duplication and improve the management of purchases.
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- Date created
- 2020
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- Subjects / Keywords
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- Type of Item
- Research Material