Sign up for free newsletter

 

Picture of a man with megaphone making announcement

Auditchain to launch of blockchain-based assurance and financial reporting platform


Auditchain is developing what it says is the world’s first Decentralised Continuous Audit & Reporting Protocol Ecosystem for enterprise assurance, reporting and disclosure.

Auditchain is aiming to reduce the risks and re-establish the audit trail in today's electronic environment. In a survey conducted by the Auditing Standards Board, the second greatest source of emerging audit or attestation risk identified by respondents was related to auditing in an electronic environment, where all the entity’s transactions are electronic and there is no paper trail.
 
This blockchain-based technology platform will enable Streaming Financial Statements in real time, contemporaneous audit opinions, and reports and related analyses for stakeholders to be produced continuously for the first time, with the potential to eventually make traditional reporting methods obsolete.
 
No regulatory jurisdiction currently requires continuous assurance or Streaming Financial Statements. However, the Auditchain technology not only proposes new standards of transparency, data standardisation and accountability for financial reporting, but also improved security, substantially increased risk controls and greater assurance for stakeholders.
 
Auditchain was founded by entrepreneur Jason Meyers, who has notable investment banking and venture capital experience. The company’s Chief Scientist, Dr Stuart Haber, co-invented the data structure now known as the Blockchain, and Eric E Cohen, the company's Director of Assurance and XBRL Architecture, is one of the co-founders of XBRL (the global regulatory reporting standard). Prof.Touradj Ebrahimi, Director of Organizational Standards Development and Relations, is a renowned expert in digital media including its security, is a leading figure in the standards community and is the convenor of JPEG.
 
Meyers says; “Not only does the protocol enable the evaluation of all transactions being examined under audit, a process known as 100 per cent population testing, but also the creation of a complete set of proofs at the time the transaction occurs, giving external auditors additional comfort when providing assurance on a continuous basis – a process that is without precedent.”
 
“Auditor adoption of the network can lead to greater independence and increased operational efficiencies within the assurance industry, giving a wider range of auditor selection for decentralised enterprise assurance and allowing larger audit firms to focus on other areas of consulting” added Meyers.
 
Haber says: "Assuring the integrity of business records was the intention of my early work with Scott Stornetta back in 1990. Auditchain represents the completion of the original vision we had during that early work."
 
Cohen adds: "This project represents the instantiation of a public, transparent, standardised, cryptographically-supported, seamless audit trail that plays a role in completing my vision for the assurance industry."
 
The Auditchain economy will be powered by the AUDT Token. Auditors will be paid AUDT rewards for providing standardised levels of assurance. Premium levels of assurance will be requested and paid by enterprise users through a library of engagement contracts.
 
Consumers will use AUDT Tokens for subscriptions to more granular detail that comprises Streaming Financial Statements, audit analytics as well as sector-based analytics and macro-economic reporting. Enterprises can contribute computational power back to the network, which can substantially reduce net assurance and reporting compliance costs. 
 
The DCARPE Alliance, a non-profit organisation and coalition of members of the investment, accounting, audit, legal and financial reporting community, is planning its first assembly of plenary meetings this Autumn.
 
The Alliance will foster the adoption of the DCARPE Protocol. The scheduled meetings are a call to all certified public accountants, chartered accountants, software solution providers and members of the audit and reporting supply chain to join the Alliance and become service providers on the Auditchain network.
 
Auditchain is holding a private sale for early adopters to buy AUDT tokens for future staking and usage. The company will also be conducting a Token Generation Event, within the next two months, which comes with a unique ‘Airdrop’ designed to additionally reward early, long-term adopters who hold AUDT Tokens (the only Airdrop of its kind at the time of writing).
 
250,000,000 AUDT will initially be launched on the Ethereum network. Auditchain will Airdrop up to a total of 42,685,996 additional AUDT after the Token Generation Event. The Airdrop will reward those that hold AUDT and do not move or sell them and is being referred to as a “Proof of HODL” Airdrop (HODL is a term derived from a misspelling and later used in the cryptocurrency space to mean “Hold on for dear life”).
 
Auditchain has a fast-growing community in its Telegram chat group. Anyone can join if they want to be the first to find out about the Token Generation Event and Airdrops, as well as the latest news and developments on this exciting, disruptive, project.

specialreports
other gfm publications