Revolutionizing Auditing and Transparency: the Power of Blockchain Technology

ABSTRACTSThe widespread adoption of blockchain technology in auditing faces significant operational, technical, and regulatory challenges that hinder effective implementation, particularly regarding integration with existing audit infrastructures and standardization across different jurisdictions. These challenges are compounded by cybersecurity concerns and data privacy obligations, creating barriers to realizing blockchain's potential for enhancing audit quality and transparency. This study examined the effect of blockchain technology on auditing and transparency among professional accountants in Nigeria. The research employed a descriptive survey design utilizing primary data collected through structured questionnaires administered to 362 selected members of the Institute of Chartered Accountants of Nigeria (ICAN) across various sectors. Multiple regression analysis was conducted using SPSS to assess the relationships between blockchain implementation variables and audit outcomes. The findings revealed that blockchain implementation significantly impacts audit quality and efficiency (coefficient = 0.342, p = 0.000), auditing effectiveness (coefficient = 0.398, p = 0.000), and stakeholder trust (coefficient = 0.364, p = 0.000). Additionally, fraud detection systems, smart contracts, and stakeholder trust indicators all demonstrated significant positive relationships with audit outcomes across all models, with R-squared values ranging from 0.689 to 0.721. The study concluded that blockchain technology has a significant positive effect on auditing and transparency in professional accounting practices. Professional accounting firms should strengthen their blockchain implementation strategies, enhance fraud detection mechanisms, prioritize smart contract deployment, and develop comprehensive stakeholder trust-building strategies. These recommendations can help firms leverage blockchain technology to improve audit quality, effectiveness, and stakeholder confidence in financial reporting processes.