Blockchain technology, which is widely regarded as one of the safest and most secure information-recording and financial transaction mechanisms available today, will now be included in the curriculum of the Institute of Chartered Accountants of India (ICAI). The Institute of Chartered Accountants of India (ICAI) has announced that it will investigate the application of blockchain technology in auditing.
“Among the emerging technologies, artificial intelligence and blockchain technology will be the primary focus,” says the author. “We will look into how blockchain technology can be used in auditing,” said Debashis Mitra, the new president, in an interview with PTI.
According to Mitra, the Institute of Chartered Accountants of India (ICAI) will devote a significant amount of attention to technology because it not only disrupts but also creates opportunities.
Block chain technology is the underlying concept that underpins the operation of the blockchain. A blockchain is an immutable, distributed digital ledger that can’t be changed. A “block” is a collection of transactions or records on the ledger that are stored separately from one another, and the information contained within a block is typically linked to the information contained within a previous block. Over time, this results in the formation of a chain of transactions, which is what the term “blockchain” refers to.
A peer review mechanism for certain categories of firms that provide assurance services to specific classes of entities, according to Mitra, will go a long way toward improving the overall quality of audits.
Beginning on April 1, practise units that have completed a statutory audit of enterprises with equity or debt securities listed on the Indian stock exchanges will be eligible to participate in the phased implementation. Over the next three years, the rollout will gradually expand to include firms that provide assurance services to privately held companies.
The institute’s recently launched Audit Quality Maturity Model – Version 1.0 (AQMM v1.0) will also assist sole proprietors and audit firms in self-evaluating their current level of audit maturity, identifying areas where competencies are lacking and developing an action plan for achieving a higher level of audit maturity, according to Mitra.
In addition, he stated, “ICAI is committed to being a partner in the achievement of the United Nations Sustainable Development Goals (SDGs) 2030 Agenda and to strengthening the sustainability reporting ecosystem in the country.”