Financial auditing is crucial for organizations to maintain accurate transaction records and ensure proper fund management, yet traditional systems often face challenges in security, transparency, and traceability. This research addresses the need for a more robust and efficient financial auditing system by exploring blockchain technology’s potential. The main objectives are to analyze current financial auditing systems and their limitations, propose a framework integrating blockchain for enhanced auditing, and provide implementation guidelines for blockchain-based decentralized applications in auditing. Blockchain offers a decentralized approach to data storage and validation, ensuring immutability and transparency of recorded transactions. By leveraging distributed ledger technology and consensus mechanisms, this paper aims to develop a system allowing authorized parties to initiate fund transfers while enabling stakeholders to monitor fund status securely and transparently. The paper reviews existing literature on financial auditing systems and proposed blockchain-based solutions, introduces a novel framework incorporating blockchain to manage transactions and generate compliance audit reports, and provides practical guidelines for selecting appropriate blockchain platforms and consensus mechanisms.

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Decentralized Distributed Financial Audit System

  • Aum Vekariya,
  • Harsh Hingrajia,
  • Martin Parmar,
  • Mrugendra Rahevar

摘要

Financial auditing is crucial for organizations to maintain accurate transaction records and ensure proper fund management, yet traditional systems often face challenges in security, transparency, and traceability. This research addresses the need for a more robust and efficient financial auditing system by exploring blockchain technology’s potential. The main objectives are to analyze current financial auditing systems and their limitations, propose a framework integrating blockchain for enhanced auditing, and provide implementation guidelines for blockchain-based decentralized applications in auditing. Blockchain offers a decentralized approach to data storage and validation, ensuring immutability and transparency of recorded transactions. By leveraging distributed ledger technology and consensus mechanisms, this paper aims to develop a system allowing authorized parties to initiate fund transfers while enabling stakeholders to monitor fund status securely and transparently. The paper reviews existing literature on financial auditing systems and proposed blockchain-based solutions, introduces a novel framework incorporating blockchain to manage transactions and generate compliance audit reports, and provides practical guidelines for selecting appropriate blockchain platforms and consensus mechanisms.