Blockchain in Audit Transparency

 By Kavishka, January 2026

Blockchain's Role in Enhancing Audit Transparency and Internal Controls



Blockchain technology promises decentralized audit trails, aligning with internal control objectives under COSO by enabling immutable transaction logs. Smart contracts automate control execution, like automatic compliance checks in supply chains, reducing fraud risks in IT environments.

Emerging applications include blockchain for real-time auditing of financial controls, as explored in bibliometric studies showing clusters around transparency and data governance. For example, enterprise blockchains like Hyperledger Fabric integrate with ERP systems for tamper-proof audit evidence, adopted in Asia-Pacific firms for SOX compliance.


Academic theory debates scalability: While blockchain bolsters ITGC like change management, high energy costs and interoperability issues challenge global adoption. Best fits involve hybrid models with traditional audits, per 2026 trends emphasizing ethical data governance.

Paradigm visual: Ledger Blocks (transactions) → Consensus Mechanisms (validation controls) → Audit Queries (smart contract outputs). This reflects course concepts in emerging information security, urging critical examination of blockchain versus centralized databases.


References

Comments

  1. Rangi Madhushika30 January 2026 at 07:54

    A clear and insightful discussion on how blockchain can enhance audit transparency and strengthen internal controls. I especially liked the linkage to COSO objectives and the practical examples of smart contracts and enterprise blockchains like Hyperledger Fabric. The balanced view on scalability, energy concerns, and the need for hybrid audit models makes this a thoughtful and realistic analysis of blockchain’s role in modern IT auditing

    ReplyDelete
  2. J W Sachini DIlhara30 January 2026 at 08:00

    Insightful article, Kavishka! The explanation of blockchain enhancing audit transparency and smart contracts is clear. If the input data on a blockchain is incorrect, how should auditors address potential errors-are off-chain controls still needed?

    ReplyDelete
  3. Yalana Madurangi30 January 2026 at 09:07

    Interesting and relevant topic. You’ve explained the impact of blockchain on auditing very well.

    ReplyDelete
  4. Madhushan Gunawardhane 30 January 2026 at 09:20

    Great overview of how blockchain can improve audit transparency and internal controls. The practical examples make the concepts easy to understand and relevant.

    ReplyDelete
  5. Chamudi30 January 2026 at 10:09

    Great article! Blockchain’s role in audits is easy to understand from your explanation.

    ReplyDelete
  6. Shalitha30 January 2026 at 21:30

    A sharp, research-grounded summary. Referencing bibliometric studies and real-world adoption in Asia-Pacific for SOX compliance (like Hyperledger with ERP) gives strong credibility to the discussion beyond hype. Your balanced conclusion—highlighting the 'best fit' as a hybrid model—is prudent and aligns with the critical examination urged by the course. This is a excellent primer on blockchain's realistic audit applications.

    ReplyDelete
  7. Tharushi Nishadi30 January 2026 at 22:43

    Interesting visualization! I like how you connected ledger blocks, consensus mechanisms, and audit queries to illustrate blockchain auditing. This clearly shows the differences between blockchain and centralized databases and highlights the importance of understanding emerging information security concepts.

    ReplyDelete
  8. Kaumini Kalupahana30 January 2026 at 23:10

    In a world where cloud computing reshaping how audits are conducted by both transparency and internal control system.In this article explain how blockchain features enhancr the intergrity of the control processes in modern organization.Thank you for knowledge sharing...

    ReplyDelete

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