A Comprehensive Study on Blockchain Technology and its Prospects to Create an Effective Internal Control System
Saji Vithal Vernekar, Aman Deep Gupta, Ganesh Chavan · International Journal of Emerging Research in Engineering Science and Management · 2024
This paper explores the revolutionary impact of blockchain technology on internal control systems in organizations. In today’s interconnected and rapidly changing corporate landscape, businesses must establish efficient administrative control systems to mitigate risks and meet legal obligations. Blockchain technology, with its decentralized record-keeping and cryptographic security features, addresses many contemporary issues related to transparency, security, and efficiency. This study delves into how blockchain affects internal control frameworks by ensuring immutable transaction trails, improving traceability, and enhancing security, all while automating processes through smart contracts. Additionally, challenges such as scalability, interoperability, and regulatory compliance are discussed. The conclusion emphasizes that while blockchain is not a replacement for internal control systems, it acts as a powerful complement, strengthening overall system efficiency and effectiveness.