Skip to main content
SpringerLink
Log in

The Doors Are Opening for the New Pedigree: A Futuristic View for the Effects of Blockchain Technology on Accounting Applications

  • Chapter
  • First Online:
Digital Business Strategies in Blockchain Ecosystems

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Developments in communication technologies have enabled entities to benefit from new technological infrastructures with improved efficiency. In this context, blockchain, as a new, innovative communication technology, can provide a better solution that promises efficiency and improved transparency for every kind of transaction that involves value exchange including stocks, derivatives, interbank transactions, and accounting operations of entities. Today, whenever a value exchange transaction is needed between individuals or institutions, a regulatory and intermediary body is needed in order to ensure trustworthiness and transparency. Supporters of a blockchain called the “internet of values” argue that it sustains a more reliable infrastructure without any intermediary, unlike traditional systems that include regulators and intermediaries. Blockchains established by private institutions for intercompany operations give the decision-making authority of record approvals and monitoring ledgers to the system’s managers. Especially companies or institutions can benefit from these private blockchains without a need for a trust mechanism such as intermediaries. This chapter aims to exhibit the current accounting operation areas that blockchain technology impacts, s as well as the future direction of the integration between the technology and accounting.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    DOMO, Data Never Sleeps 6.0 Report available at: https://www.domo.com/learn/data-never-sleeps-6

References

  • Alles, M. G., Brennan, G., Kogan, A., & Vasarhelyi, M. A. (2006). Continuous monitoring of business process controls: A pilot implementation of a continuous auditing system at Siemens. International Journal of Accounting Information Systems, 7(2), 137–161. https://doi.org/10.1016/j.accinf.2005.10.004

    Article  Google Scholar 

  • Alles, M. G., Kogan, A., & Vasarhelyi, M. A. (2002). Feasibility and economics of continuous assurance. Auditing: A Journal of Practice & Theory, 21(1), 125–138.

    Article  Google Scholar 

  • Anandarajan, A., Srinivasan, C. A., & Anandarajan, M. (2004). Historical overview of accounting information systems. In Business intelligence techniques (pp. 1–19). Berlin, Heidelberg: Springer.

    Chapter  Google Scholar 

  • Appelbaum, D., & Nehmer, R. (2017). Designing and auditing accounting systems based on blockchain and distributed ledger principles. Upper Montclair, NJ: Feliciano School of Business.

    Google Scholar 

  • Blums, I., Weigand, H. (2017). Financial reporting by a shared ledger. In Proceedings of JOWO.

    Google Scholar 

  • Borthick, A. F., & Pennington, R. R. (2017). When data become ubiquitous, what becomes of accounting and assurance? Journal of Information Systems, 31(3), 1–4.

    Article  Google Scholar 

  • Brazel, J. F., & Dang, L. (2008). The effect of ERP system implementations on the management of earnings and earnings release dates. Journal of Information Systems, 22(2), 1–21.

    Article  Google Scholar 

  • Brewster, M. (2003). Designing and auditing accounting. Hoboken: Wiley.

    Google Scholar 

  • Briloff, A. J. (2001). Garbage in/garbage out: A critique of fraudulent financial reporting: 1987–1997 (the COSO report) and the SEC accounting regulatory process. Critical Perspectives on Accounting, 12(2), 125–148.

    Article  Google Scholar 

  • Bumgarner, N., & Vasarhelyi, M. A. (2018). Continuous auditing—A new view. In Continuous auditing: Theory and application (pp. 7–51). Bingley, UK: Emerald Publishing Limited.

    Chapter  Google Scholar 

  • Buterin, V. (2014). A next-generation smart contract and decentralized application platform (white paper).

    Google Scholar 

  • Byrnes, P., Brennan, C. G., Vasarhelyi, M., Moon, D., Ghosh, S. (2015). Managing risk and the audit process in a world of instantaneous change (Audit Analytics, 129).

    Google Scholar 

  • Byrnes, P., Criste, T., Stewart, T., & Vasarhelyi, M. (2014). Reimagining auditing in a Wired World (AICPA White Paper, 11).

    Google Scholar 

  • Caglio, A. (2003). Enterprise resource planning systems and accountants: Towards hybridization? European Accounting Review, 12(1), 123–153.

    Article  Google Scholar 

  • Cai, Y., & Zhu, D. (2016). Fraud detections for online businesses: A perspective from blockchain technology. Financial Innovation, 2(1), 20.

    Article  Google Scholar 

  • Carlin, T. (2018). Blockchain and the journey beyond double entry. Australian Accounting Review.

    Google Scholar 

  • Chen, H. J., Yan Huang, S., Chiu, A. A., & Pai, F. C. (2012). The ERP system impact on the role of accountants. Industrial Management & Data Systems, 112(1), 83–101.

    Article  Google Scholar 

  • Chow, C. W. (1982). The demand for external auditing: Size, debt and ownership influences. Accounting Review, 57, 272–291.

    Google Scholar 

  • Christidis, K., & Devetsikiotis, M. (2016). Blockchains and smart contracts for the internet of things. Ieee Access, 4, 2292–2303.

    Article  Google Scholar 

  • Cohn, M. (2017). Audit technology evolving quickly at big four. Accounting Today. Retrieved from https://www.accountingtoday.com/news/audit-technology-evolving-quickly-at-big-four-firms

  • Coyne, J. G., & McMickle, P. L. (2017). Can blockchains serve an accounting purpose? Journal of Emerging Technologies in Accounting, 14(2), 101–111.

    Article  Google Scholar 

  • Cunnigham, L. A. (2006). Too big to fail: Moral hazard in auditing and the need to restructure the industry before it unravels. Columbia Law Review, 106, 1698.

    Google Scholar 

  • Dai, J., & Vasarhelyi, M. A. (2017). Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), 5–21.

    Article  Google Scholar 

  • de Kruijff, J., & Weigand, H. (2017, June). Understanding the blockchain using enterprise ontology. In International Conference on Advanced Information Systems Engineering (pp. 29–43). Cham: Springer.

    Chapter  Google Scholar 

  • Dewing, I. P., & Russell, P. O. (2004). Accounting, auditing and corporate governance of European listed countries: EU policy developments before and after Enron. JCMS: Journal of Common Market Studies, 42(2), 289–319.

    Google Scholar 

  • Fanning, K., & Centers, D. P. (2016). Blockchain and its coming impact on financial services. Journal of Corporate Accounting & Finance, 27(5), 53–57.

    Article  Google Scholar 

  • Fearnley, S., & Beattie, V. (2004). The reform of the UK’s auditor independence framework after the Enron collapse: An example of evidence-based policy making. International Journal of Auditing, 8(2), 117–138.

    Article  Google Scholar 

  • Fleischman, R., & Tyson, N. T. (1993). Cost accounting during the industrial revolution: The present state of historical knowledge. The Economic History Review, 46(3), 503–517.

    Google Scholar 

  • Ghasemi, M., Shafeiepour, V., Aslani, M., & Barvayeh, E. (2011). The impact of information technology (IT) on modern accounting systems. Procedia-Social and Behavioral Sciences, 28, 112–116.

    Article  Google Scholar 

  • Gökten, P. O. (2018). Karanlıkta Üretim: Yeni Çağda Maliyetin Kapsamı. Muhasebe Bilim Dünyası Dergisi, 20(4), 880–897.

    Google Scholar 

  • Grabski, S., Leech, S., & Sangster, A. (2008). Management accountants: A profession dramatically changed by ERP systems. CIMA Global, 4(5), 1–9.

    Google Scholar 

  • Greiling, D., & Spraul, K. (2010). Accountability and the challenges of information disclosure. Public Administration Quarterly, 34, 338–377.

    Google Scholar 

  • Grigg, I. (2005). Triple entry accounting. Systemics. Retrieved from http://iang.org/papers/triple_entry.html

  • Hatherly, D. (2003). Auditing after Enron: Reshaping the investor information value chain. Journal of General Management, 28(3), 29–42.

    Article  Google Scholar 

  • Hung, Y. S., & Cheng, Y. C. (2018). The impact of information complexity on audit failures from corporate fraud: Individual auditor level analysis. Asia Pacific Management Review, 23, 72–85.

    Article  Google Scholar 

  • Ijiri, Y. (1982). Triple-entry bookkeeping and income momentum. American Accounting Association.

    Google Scholar 

  • Ijiri, Y. (1986). A framework for triple-entry bookkeeping. Accounting Review, 61, 745–759.

    Google Scholar 

  • Jean-Baptiste, R. (2009). Can accountants bring a positive contribution to ERP implementation? International Management Review, 5(2), 80–89.

    Google Scholar 

  • Karan, R. (2004). Implications for third party actions against auditors of recently failed US companies and decision-usefulness objective under the New York rule. Critical Perspectives on Accounting, 15(6–7), 927–941.

    Article  Google Scholar 

  • Lafarre, A., & Van der Elst, C. (2018). Blockchain technology for corporate governance and shareholder activism. SSRN Electronic Journal.https://doi.org/10.2139/ssrn.3135209.

  • Lauwers, L., & Willekens, M. (1994). Five hundred years of bookkeeping: A portrait of Luca Pacioli. Tijdschrift voor Economie en Management, 39(3), 289–304.

    Google Scholar 

  • Lee, T. A., Bishop, A., & Parker, R. H. (2014). Accounting history from the renaissance to the present: A remembrance of Luca Pacioli. London: Routledge.

    Book  Google Scholar 

  • Mancini, D., Dameri, R. P., & Bonollo, E. (2016). Looking for synergies between accounting and information technologies. In Strengthening information and control systems (pp. 1–12). Cham: Springer.

    Chapter  Google Scholar 

  • Markus, M. L., & Tanis, C. (2000). The enterprise systems experience-from adoption to success. Framing the domains of IT research: Glimpsing the future through the past, 173, 207–173.

    Google Scholar 

  • McCallig, J., Robb, A., & Rohde, F. (2019). Establishing the representational faithfulness of financial accounting information using multiparty security, network analysis and a blockchain. International Journal of Accounting Information Systems, 33, 47–58.

    Article  Google Scholar 

  • Morkunas, V. J., Paschen, J., & Boon, E. (2019). How blockchain technologies impact your business model. Business Horizons, 62(3), 295–306.

    Article  Google Scholar 

  • Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. Retrieved from www.bitcoin.com

  • Newman, M., & Westrup, C. (2005). Making ERPs work: Accountants and the introduction of ERP systems. European Journal of Information Systems, 14(3), 258–272.

    Article  Google Scholar 

  • Nofer, M., Gomber, P., Hinz, O., & Schiereck, D. (2017). Blockchain. Business & Information Systems Engineering, 59(3), 183–187. https://doi.org/10.1007/s12599-017-0467-3

    Article  Google Scholar 

  • O’Leary, D. E. (2017). Configuring blockchain architectures for transaction information in blockchain consortiums: The case of accounting and supply chain systems. Intelligent Systems in Accounting, Finance and Management, 24(4), 138–147.

    Article  Google Scholar 

  • OECD. (2015). G20/OECD principles of corporate governance. Paris: OECD Publishing. https://doi.org/10.1787/9789264236882-en

    Book  Google Scholar 

  • Özdoğan, B. (2017). The future of accounting profession in an era of start-ups. In Accounting and corporate reporting-today and tomorrow. London: InTech.

    Google Scholar 

  • Özdoğan, B., & Karğın, S. (2018). Blok zinciri teknolojisinin muhasebe ve finans alanlarina yönelik yansimalari ve beklentiler. Muhasebe ve Finansman Dergisi, (80), 161–176.

    Google Scholar 

  • Piazza, F. S. (2017). Bitcoin and the blockchain as possible corporate governance tools: Strengths and weaknesses. Bocconi Legal Papers, 9, 125.

    Google Scholar 

  • Pilkington, M. (2016). Blockchain technology: Principles and applications. In F. X. Oleros & M. Zhegu (Eds.), Research handbook on digital transformations. Retrieved from https://papers.ssrn.com/sol3/Papers.cfm?abstract_id.2662660

    Google Scholar 

  • Raskin, M. (2017). The law and legality of smart contracts. 1 Georgetown Law Technology Review, 304, 305–326.

    Google Scholar 

  • Reinstein, A., & McMillan, J. J. (2004). The Enron debacle: More than a perfect storm. Critical Perspectives on Accounting, 15(6–7), 955–970.

    Article  Google Scholar 

  • Ronen, J. (2010). Corporate audits and how to fix them. Journal of Economic Perspectives, 24(2), 189–210.

    Article  Google Scholar 

  • Roy, M. N., & Saha, S. S. (2018). Statutory auditors’ Independence in select corporate accounting scandals since 1990: A comparative study. In Statutory auditors’ independence in protecting stakeholders’ interest (pp. 121–171). Cham: Palgrave Macmillan.

    Chapter  Google Scholar 

  • Sangster, A. (2015). The genesis of double entry bookkeeping. The Accounting Review, 91(1), 299–315.

    Article  Google Scholar 

  • Simoyama, F. D. O., Grigg, I., Bueno, R. L. P., & Oliveira, L. C. D. (2017). Triple entry ledgers with blockchain for auditing. International Journal of Auditing Technology, 3(3), 163–183.

    Article  Google Scholar 

  • Soltani, B. (2014). The anatomy of corporate fraud: A comparative analysis of high profile American and European corporate scandals. Journal of Business Ethics, 120(2), 251–274.

    Article  Google Scholar 

  • Szabo, N. (1994). Smart contracts. Retrieved from http://szabo.best.vwh.net/smart.contracts.html

  • Unerman, J., & O’Dwyer, B. (2004). Enron, WorldCom, Andersen et al.: A challenge to modernity. Critical Perspectives on Accounting, 15(6–7), 971–993.

    Article  Google Scholar 

  • Wallace, W. (1980). The economic role of the audit in free and regulated markets. Open Educational Resources, 2.

    Google Scholar 

  • Wang, Y., & Kogan, A. (2017). Designing privacy-preserving blockchain based accounting information systems. Retrieved from https://doi.org/10.2139/ssrn.2978281

  • Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7–31.

    Google Scholar 

  • Zhang, Y., & Wen, J. (2017). The IoT electric business model: Using blockchain technology for the internet of things. Peer-to-Peer Networking and Applications, 10(4), 983–994.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management, Baskent University, Etimesgut, Ankara, Turkey

    Soner Gökten

  2. Department of Business Administration, Manisa Celal Bayar University, Yunusemre, Manisa, Turkey

    Burak Özdoğan

Authors
  1. Soner Gökten
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Burak Özdoğan
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Soner Gökten .

Editor information

Editors and Affiliations

  1. School of Business, Ibn Haldun University, Basaksehir, Istanbul, Turkey

    Umit Hacioglu

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Gökten, S., Özdoğan, B. (2020). The Doors Are Opening for the New Pedigree: A Futuristic View for the Effects of Blockchain Technology on Accounting Applications. In: Hacioglu, U. (eds) Digital Business Strategies in Blockchain Ecosystems. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-29739-8_20

Download citation

Publish with us

Policies and ethics

Search

Navigation