Blockchain for CPAs: Financial Reporting Opportunities and Audit Implications

DLT/blockchain is already considered to be a disruptive force in the banking and financial services industries due to the use of the technology in documenting cryptocurrency transactions. Blockchain likely will dramatically alter accounting and audit practices, and accounting firm professionals need to grasp the impact of DLT on financial statement preparation and audit engagements.

A DLT/blockchain is a decentralized, peer-to-peer networked database that stores a ledger of assets and transactions, and uses its network to authenticate transactions. Authentication allows blockchain and DLT transactions to be verified, monitored and enforced without a third-party intermediary. For accounting and audit professionals, this creates a virtual real-time distribution of data. Verification processes which currently add days or weeks to an audit engagement can be done instantly.

CPAs utilizing the technology can deliver blockchain-enabled accounting, attest and advisory services to business clients. A critical first step for using DLT is understanding the difference between private and public blockchains and addressing data security and privacy concerns inherent in new technology. Forward-thinking firms will seek to get out ahead of the competition by grasping and adopting the new technology.

Listen as our authoritative panel provides a critical and practical early look at the impact and potential applications of blockchain technology for accounting and audit professionals.

1. Characteristics of DLT and blockchain
   1. Decentralized, peer-to-peer database
   2. No intermediary required
   3. Authenticated transactions
   4. Difference between blockchain and DLT
2. Applications for financial accounting and audit engagements
3. Public vs. private blockchains
4. Automated tracking and enforcement
5. Concerns and opportunities

The panel will review these and other key issues:

• What is a distributed ledger and how does it change the way transactions and information are documented?
• What are the advantages of DLT and blockchain as to data security, efficiency and fraud protection?
• What factors must accounting firms consider in setting up a private blockchain network to provide financial statement and audit services?
• What are the potential impediments to a CPA firm utilizing blockchain technology?

Learning Objectives

After completing this course, you will be able to

• Describe the elements of a distributed ledger
• Differentiate between blockchain and DLT
• Identify the impact of blockchain utilization on audit processes to verify transactions, contract terms and account status

• Field of Study: Accounting
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years plus business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other accountants and/or audit professionals. Specific knowledge and understanding of audit processes and transaction verification; familiarity with audit technology.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.