Enhancing Audit Efficiency and Security Through Emerging Technologies: A Blockchain-Based Approach

This study delves into the realm of audit efficiency and security, focusing on leveraging emerging technologies to overcome prevalent challenges in traditional auditing methods. The Commission on Audit's mandate to examine and settle accounts underscores the critical role of audits in ensuring financial credibility and internal control improvement. However, with the rapid advancement of technology, there is a pressing need for auditors to adapt and understand its implications. The audit expectation gap, stemming from differing perceptions between the public and the actual scope of financial audits, further complicates the auditing landscape. Businesses often anticipate audits to uncover financial irregularities beyond the audit's limitations, leading to general concerns about the process. To address these challenges, this study developed an automated audit system utilizing cutting-edge technologies. It advocates for the creation of a blockchain-based application using Hyperledger Fabric to aid auditors in managing receipts and generating liquidation reports. As a result, it established a tamper-proof digital storage system using blockchain and IPFS for receipt copies, enhancing security and integrity. Furthermore, the study involves the development of an OCR model to extract vital data from digital receipts, aiming to enhance accuracy and efficiency in audit procedures. By bridging the liability and performance gaps inherent in traditional auditing methods, this research paves the way for a more robust and reliable audit framework.