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.
Auditchain will be suitable for private companies such as venture backed startups as well as publicly traded companies, non-profit organizations and governments.
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 is addressed through the integration of enterprise private blockchains with the Auditchain public ledger.
Smart contracts automate the production of a hash value to the blockchain. As enterprises adopt and utilize smart contracts, the need for scanned PDFs will decrease. Our own Chief Scientist, Dr. Stuart Haber was the first person to cryptographically time-stamp a digital document. See: https://crl.anf.es/pdf/Haber_Stornetta.pdf
Dr. Haber’s digital time stamping technique was centrally referenced by Satoshi Nakamoto in creation of Bitcoin. See references 3, 4 and 5 in the bibliography of: https://bitcoin.org/bitcoin.pdf
Only a hash value is stored on the blockchain. A bit string is a value representing a string of bits, each character represents one bit. A SHA 256 bit string contains 32 bits which do not occupy much storage. A SHA 256-bit string can represent a significant amount of data off-chain.
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.
If rapid adoption occurs, the Auditchain community will be dispatched to develop new and unique smart contracts though our bounty program.
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.
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.
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.
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. https://www.aicpa.org/interestareas/frc/assuranceadvisoryservices/sorhome.html
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.
See PwC’s description of a financial statement audit; https://www.pwc.com/gx/en/services/audit-assurance/publications/understanding-financial-audit.html
The total supply of AUDT is 250,000,000, however, there will be approximately 237 additional AUDT emitted per block, as proposed, assuming 10 minute block times.
The AUDT allocation is as follows; (i) 160,000,000 to be sold in the TGE, (ii) 25,833,333 to be distributed to the team, (iii) 25,833,333 reserved and distributable to advisors, (iv) 25,833,333 reserved and distributable to partners and providers of applications and services to the Auditchain network and (v) 12,500,000 reserved and distributable in connection with bounties.