The Internet has given us a robust way to share and access information. Now Blockchain gives us a powerful way to distribute and acquire valuable insight for progression. Given time, virtually every function in the world of financial services could be shifted, dis-intermediated, and decentralized with such a promising technology. So in order to seek valuable acumen and to further expand upon whether the potential adoption of blockchain in the coming years will reduce audit fees, impact audit quality, or perhaps do away with the audit completely, the big giant auditing firms, including Deloitte, EY, KPMG, and PwC, are connecting together to form a group of 20 banks in Taiwan to explore and further experiment how to harness blockchain technology to deliver improved financial reporting services during auditing of public companies.
For Governments, banks, institutional investors, influential public figures and for big industrial giants globally, 2018 could be considered a decisive year towards the acceleration in transfiguring and transitioning modern technology with much more strategic and agile approach towards the betterment of the global ecosystem.
On July 19, through one of Taiwan’s’ local media, it has been reported that a select group of publicly traded companies on the island will be jointly engrossing themselves in a pilot project. Across this trial blockchain platform, the auditing firms will be primarily allowed to obtain and analyze the audit evidence as an external confirmation procedure.
Conventionally, an external confirmation is processed and organized manually by auditing firms to evaluate and confirm the legitimacy of public companies’ in their financial dealings with third parties.
The joint collaboration has been developed by Taiwan’s Financial Information Service Co. (FISC) collectively with the 20 banks. This new structure will transfer the public firms’ transaction data using a blockchain platform, where the banks will join as validators.
The Financial Information Service Co., with the new machinery knowledge, envisages reducing the confirmation time to get it done within a day which usually takes half a month to complete the process.
By revamping with the objective to streamline and automate the confirmation process in a distributed manner and allowing auditing firms to observe the transactions through a traceable and tamper-proof series of data, the FISC wants to watch out for hidden capabilities of the blockchain. After the trial, they anticipate rolling out the auditing service to the 1,400 public companies listed on the island next year.