Accounting firm Price Waterhouse Coopers has disclosed that it will be offering an audit service for blockchain solutions in a bid to encourage the use of the technology. Through the audit services companies will be placed in a position to obtain an external review of their blockchain technology and consequently ensure it is being properly used. It will also enable employees of the company to monitor the blockchain transactions. According to Price Waterhouse Coopers the audit service will increase the comfort levels and consequently the adoption of blockchain technology.
Per Michael Smith, a Price Waterhouse Coopers partner in charge of internal audit solutions, the service will offer an independent validation to ensure the blockchain technology is working as envisaged.
Decentralized digital ledgers
Since it makes use of decentralized digital ledgers records of transactions on the blockchain are immutable. Thus besides virtual currencies it can additionally be used in supply chain management, auditing financial transactions and online identity verification. In the case of financial transaction audits, blockchain solutions can assume the role of an auditor.
According to Price Waterhouse Coopers there are various obstacles hindering the adoption of the technology and this includes concerns regarding compliance with organizations and firms besides corporate controls and risk management. Though blockchain technology is widely considered to be tamper-proof, the adoption of the tech is hindered by the same issues that hamper other technologies such as fear of the risks that come with it.
The launch of the audit service comes in the wake of Price Waterhouse Coopers announcing that it was conducting tests on an analytics tool used in blockchain technologies with a view to assisting in the tracing of digital tokens following their launch. This would help firms in guarding against the risk that their tokens would be misused for illegal purposes such as crime or money laundering.
?While on the blockchain ledger one could track the amount of transactions that have been done using the cryptocurrencies, there is still no way for an issuer of an ICO to trace its coins and know how these coins are being used,? said the forensic services partner of PwC China and Hong Kong, Eric Young.
Hong Kong has become a favored jurisdiction for issuing tokens since it does not regulate initial coin offerings as long as they not structured like securities.
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