The perception of Malaysian auditors on blockchain

Abstract

Blockchain technology was initially created to record Bitcoin (digital currency) transactions, but gradually its functions have expanded. As more businesses start to use digital currency, auditors may need to consider auditing transactions on blockchain should their clients start to use this technology. Blockchain can enable auditors to keep an audit trail. In addition, audit evidence for the occurrence of a transaction can be established by blockchain technology. However, there has been a dearth of studies on the extent of Malaysian auditors’ awareness on blockchain. Therefore, this study aims to achieve the following objectives which are to: (i) determine the extent of Malaysian auditors’ awareness on blockchain, (ii) explore the Malaysian auditors’ perception regarding the usefulness of blockchain, (iii) investigate the Malaysian auditors’ perception regarding challenges of auditing transaction on a blockchain system, (iv) tests whether level of knowledge is associated with perception of auditors on blockchain; and if the perception in turn influences intention to use blockchain technology. The study used the theory of Technology Acceptance Model (TAM) as framework. The sample of this study was auditors working in audit firms throughout Malaysia. Overall, sixty-five auditors participated in the questionnaire survey, which was used to collect data for this study. Descriptive analyses, correlation and regression analysis were carried out to analyse the data. The findings of the study indicate that auditors have low awareness on blockchain. Auditors perceive blockchain as moderately useful. In addition, the results revealed that auditors are more concerned on the challenges that they may face, when auditing transactions on the blockchain system. Furthermore, it was revealed that Level of Knowledge has an impact on auditors Perceived Usefulness of blockchain. Whereas, Perceived Ease of Use and Perceived Risk influence Intention to Use blockchain. The findings of this study will assist audit firms in Malaysia to initiate workshops and trainings on blockchain in order to enhance their auditors’ awareness on the technology