“Big Four” Auditors To Test Blockchain Platform For Financial Reporting
The biggest four auditing firms of the world, Deloitte, EY, KPMG and PwC, are getting together with 20 banks in Taiwan to trial a new service that will use the blockchain technology to make auditing for public companies and their reports.
The main reason why the test is made is to allow the firms to conduct an external evaluation, the process of getting and evaluating the program from outside. The new software will be used to audit companies that are publicly traded on the island.
External confirmation is a tradition among auditing firms, as to able to be trusted to audit others, they have to be audited first by their peers.
The New Taiwanese Blockchain Platform
This new project was developed by Taiwan’s Financial Information Service Co. (FISC) in a joint venture with other 20 banks of the region. The platform will use the blockchain technology to move the transactions of the public firms to the blockchain, where the banks will act as validators of the process.
Because of this new technology, the auditing firms will be allowed to view the transactions via a tamper-proof chain that is easily traceable and this will help to streamline the process and automate it.
This way, confirmation times will be reduced greatly, as they will stop taking such a large amount of time that they could take half a month before the system to start being able to be complete within a single day sometimes.
The FISC, which was initially an arm of the Ministry of Finance in Taiwan, is a company of private and public capital and has been using the blockchain technology since 2017. Together with 20 major banks, the FISC started this initiative which could be used on more than 1,400 public companies next year.