Auditchain™ is developing the world’s first Decentralized Continuous Audit & Reporting Protocol Ecosystem™ for enterprise assurance, reporting and disclosure. Its team of renowned names in blockchain, accounting and assurance seek to take traditional financial reporting practices to the next level.
Auditchain™ aims 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 standardization 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.
Jason Meyers stated; “Not only does the protocol enable the evaluation of all transactions being examined under audit, a process known as 100% 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 decentralized enterprise assurance and allowing larger audit firms to focus on other areas of consulting” added Meyers.
Discussing the project, Dr.Stuart Haber said, “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.”
Eric Cohen added, “This project represents the instantiation of a public, transparent, standardized, cryptographically-supported, seamless audit trail that plays a role in completing my vision for the assurance industry.”