Introduction

As the world of blockchain continues to evolve, it's important to understand how Big 4 accounting firms are approaching IT audits for this new technology. In this article, we take a closer look at how the Big 4 accounting firms are addressing IT audits for blockchain.

Deloitte's approach to blockchain IT audits

Deloitte has a dedicated blockchain team that provides audit and consulting services to clients. The team is comprised of experts from various disciplines including audit, risk, tax, and consulting. Deloitte's approach focuses on understanding the client's blockchain system, pinpointing risks, and then designing audit procedures to address those risks. When creating audit procedures, we consider the unique aspects of blockchain technology, such as smart contracts and consensus algorithms.

PWC's approach to blockchain IT audits 

PwC's strategy is similar to Deloitte's in that it has a dedicated blockchain team that provides audit and consulting services. PwC emphasizes the importance of understanding their clients' blockchain systems and the associated risks. They use a risk-based approach to design their audit procedures and incorporate data analytics and automation where possible. PwC also recognizes the importance of staying up-to-date on the latest developments in blockchain technology to keep their audit procedures relevant.

EY's approach to blockchain IT audits

EY's approach to blockchain IT audits is centered on risk management. We utilize a risk-based approach to identify the key risks associated with blockchain systems and design our audit procedures accordingly. Our blockchain audit methodology includes understanding the client's blockchain system, testing the accuracy and completeness of transactions, and assessing the effectiveness of the system's internal controls. We also recognize the importance of staying current on blockchain technology developments and collaborating with other stakeholders to share knowledge and insights.

KPMG's approach to blockchain IT audits

KPMG's strategy for auditing blockchain IT is in line with other Big 4 accounting firms: they have a dedicated blockchain team that provides audit and consulting services to clients. KPMG emphasizes the importance of understanding their clients' blockchain systems and the associated risks. They use a risk-based approach to design their audit procedures and leverage data analytics and automation where possible. KPMG also recognizes the importance of working with regulators and other stakeholders to develop appropriate standards for blockchain technology.

Considerations for auditing blockchain IT

One of the unique challenges in auditing blockchain systems is the absence of traditional controls such as segregation of duties and access controls. Therefore, auditors need to approach the audit from a different perspective and design audit procedures specific to blockchain systems. In addition, it is essential for auditors to stay up-to-date on the latest developments in blockchain technology and the associated risks. Collaboration with other stakeholders, such as regulators and blockchain developers, is essential to develop appropriate auditing standards and ensure that audit procedures remain relevant.

Conclusion

Big 4 accounting firms have dedicated blockchain teams that can provide audit and consulting services to their clients. Their approach to IT audits of blockchain systems is similar, emphasizing the importance of understanding their clients' blockchain systems and the associated risks. Keeping up with the latest developments in blockchain technology and collaborating with other stakeholders is crucial for the continued relevance and effectiveness of audit procedures.

Source:

​Deloitte Blockchain Services: https://www.deloitte.com/global/en/services/legal/perspectives/2022-legal-blockchain.html 

PwC Blockchain Services: https://www.pwc.com/gx/en/issues/blockchain.html

EY Blockchain Services: https://www.ey.com/en_gl/blockchain

KPMG Blockchain Services:https://kpmg.com/xx/en/home/insights/2017/02/digital-ledger-services-at-kpmg-fs.html