Assessing the Impact of Blockchain Characteristics on External Audit Quality in Jordanian SMEs

Blockchain technology, as a relatively new innovation, is finding applications in various industries to enhance data reliability. Its ability to foster trust between transacting parties in economic activities is particularly valuable, and this aligns with the core purpose of auditing, which often arises from a lack of trust. Therefore, blockchain has the potential to significantly advance audit practices. This study aimed to demonstrate the impact of blockchain characteristics on external audit quality, with a specific focus on Jordanian small and medium-sized enterprises (SMEs). The research employed a cross-sectional design and collected data from 329 employees working in financial and accounting departments. Using structural equation modeling, both the measurement model and structural model of the study were assessed. The findings of this study indicated that all blockchain characteristics play a positive role in enhancing the quality of external audits. Consequently, the paper recommends a comprehensive strategy that encompasses investments in education and training programs for auditors. This strategy aims to ensure that auditors possess a profound understanding of blockchain technology and its relevance to auditing practices.