The importance and differences of analytical procedures' application for auditing blockchain technology between external and internal auditors in Croatia

Boris Tušek, Ana Ježovita and Petra Halar

Economic Research-Ekonomska Istraživanja, 2021, vol. 34, issue 1, 1385-1408

Abstract: Nowadays audit profession is faced with an excessive evolution of the information and communication technology (ICT). The effects of ICT on auditing are dual. On the one hand, auditing is faced with the digitalization of companies’ business operations, and on the other, auditors must be able to adapt their methodologies to these changes in order to be able to audit implemented ICT in the companies’ business operations. One of the latest ICT innovations includes the application of blockchain technology (BCT) in different business operations of a company, which represents the object of auditing. In order to audit BCT, auditors must apply appropriate audit procedures, whereas analytical procedures (APs) represent the most useful one. The subjects of this paper are external and internal auditors, and their application of APs for auditing implemented BCT in the companies’ business operations, in Croatia. Therefore, the main objective of this paper is to investigate the differences in the APs’ application and its usefulness for auditing BCT, as an emerging ICT, between external and internal auditors. To investigate the main objective of the paper, desk research and survey research were conducted. Overall results indicated that external and internal auditors in Croatia are aware that auditing BCT requires the application of advanced APs, for what they need to possess excellent knowledge about APs and BCT. Obtained results showed that auditors in Croatia possess below-average knowledge about APs and BCT. Therefore, the necessity for specialized education of external and internal auditors is inevitable. Regarding the investigation of differences in the readiness to audit BCT between external and internal auditors in Croatia, the results confirmed that external auditors are more ready to audit BCT than internal auditors. Finally, research results confirmed that the application of advanced APs in audit engagements will increase the efficiency and effectiveness of companies’ business operations supported by the BCT.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2020.1828129 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:reroxx:v:34:y:2021:i:1:p:1385-1408

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2020.1828129

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().