Frequently Asked Questions
INNOVATION
Currently an audit opinion on fairness of the financial statements, the status of internal controls, as well as auditor service organization control reports are rendered within a considerable time after the financial statement period.
- It is expected, that Auditchain will offer the real time reporting of financial statements. Rather than providing an audit opinion on historic information, Auditchain will provide audit analytics that indicate the level of assurance that associated transactions are also considered both mathematically correct as well compliant with GAAP and/or IFRS, as audited.
- It is expected that Auditchain will offer an open source library of GAAP and IFRS compliant smart contracts that will be sufficient to capture, enforce and process GAAP and/or IFRS output compliant enterprise data, as well as the immediate presentation of financial statements available to stakeholders on a permissioned basis or to the general public.
- As long as the data inputs and the transactions are meeting rigid protocol requirements, the financial data will be deemed as audited and deemed reliable once it has been processed by the network.
- System and Organization Control audits will play a much larger role in the processing and presentation of financial statements.
Auditchain will be suitable for private companies such as venture backed startups as well as publicly traded companies, non-profit organizations and governments.
PRIVACY AND INFORMATION SECURITY
Source data is stored off-chain and protected by the owner but a hash value referencing the actual data representative of a transaction as well as its location will be added on-chain.
SCALABILITY
INCLUDING INFORMATION ON A BLOCKCHAIN MEANS THAT INFORMATION IS STORED ON THE BLOCKCHAIN FOREVER OR AS LONG AS THE NETWORK IS OPERATIONAL. DOES THAT MEAN THERE WILL BE A LOT OF INFORMATION STORED ON THE AUDITCHAIN BLOCKCHAIN
AND HOW WILL AUDITCHAIN STORE THAT MUCH INFORMATION?
Scalability is addressed through the integration of enterprise private blockchains with the Auditchain public ledger.
REGULATORY COMPLIANCE
If rapid adoption occurs, the Auditchain community will be dispatched to develop new and unique smart contracts though our bounty program.
Auditchain will develop and deploy a open source library of accounting treatment smart contracts. Smart contracts will be developed for all regulatory requirements, whether it is US GAAP, IFRS, statutory reporting, Governmental
accounting or reporting or any other reporting requirement.
IMPLEMENTATION OF AUDITCHAIN
The length of time for an implementation depends on the size of the enterprise. A service enterprise with annual revenue of $100,000,000 may take less time than a manufacturing enterprise of equal size.
We are not developing ERP software. We are simply developing a cyptographic highway that is traveled by an army of decentralized external audit nodes. The cost of developing the node requirements is far less than developing
ERP software.
Auditchain is not a direct competitor to large and small accounting systems. We don’t expect to replace them any more than you should expect diesel trucks to be completely replaced by electric commercial vehicles. Legacy
system integration is a focal point of our ecosystem. As enterprise architecture evolves from analog legacy systems to cryptographic architecture, Auditchain will enable interoperability.
AUDIT TYPES
To a publicly traded company, the financial statement audit offers credibility. To its shareholders, it offers comfort. And to all stakeholders — including the market at large — the external audit offers confidence.
A SOC audit is a specialized audit CPAs provide in connection with system-level controls of a service organization or entity-level controls of other organizations. See AICPA’s description of a SOC audit.
