Jason Meyers on Continuous Audit and Real-Time Reporting
What We Discuss With Jason Meyers
The emergence of blockchain will not spare any industry, and would you believe it , not even the auditing industry.
An audit does not provide absolute assurance on the truth and fairness of the financial accounts since it does not verify 100% of the transactions, but adopts a sampling approach.
As a recovering external auditor, I wanted to know whether blockchain technology can solve this pain point? Yes it can.
Enter AuditChain, the world’s first decentralized continuous audit & real time financial reporting protocol ecosystem.
This time by including 100% of the transactions, a network of independent CPAs and Chartered Accountants provide external assurance on the controls, financial data and disclosure requirements.
In this episode, you will learn;
- What decentralized continuous audit really means;
- Why real time financial reporting is necessary;
- The challenges ahead to transition from traditional audit to decentralized audit;
- How NFTs can be used not only as art collectibles but as a monetization opportunity for accountants;
- And much more…
Shownotes
How blockchain transforms audit
- Jason shares the story of where the idea of AuditChain came from [2:31]
- Jason provides an analogy of what traditional audit would mean with block times [5:49]
- How the inherent features blockchain technology solves the pain points of audit [8:39]
- Auditors not being required to detect fraud, and their incentive to retain the client instead [11:58]
- Who ends up paying for the auditors’ shortcomings to detect fraud [14:24]
AuditChain with its continuous auditing approach
- What does continuous audit mean? [16:51]
- Why is it important to have access to real time financial information and how it leads to making better investment decisions ? [21:01]
- Benefits of continuous audit for the audit profession [25:33]
- Is an audit career a good long term strategy , and new career fields with blockchain technology [26:32]
- Challenges faced by AuditChain for mass adoption, with the most important being communication [28:40]
- How does AuditChain use NFTs to provide assurance on controls? [33:24]
- Writing controls does not require coding, but instead uses Logical English with Prolog [36:51]
- How can accountants earn royalties after writing controls ? [38:30]
- The role of the AuditChain token (AUDT) to participate in the network, delegate tokens to node operators and register as validators [39:35]
The transition to Decentralized Continuous Audit
- Why the forward thinking players in the accounting and audit industry are excited about AuditChain [44:55]
- How does Jason expect phased adoption and what players will be first to embrace the technology [46:19]
- Cryptocurrencies are not intangible assets and how it misrepresents their value in financial reporting [49:14]
- How can accountants learn about AuditChain and how the company will create a knowledge platform to educate its users [54:21]
- Jason shares his prediction how many years off are we from widespread adoption of decentralized continuous audit [56:19]
