EY announces blockchain audit technology

Accounting firm EY has launched a suite of blockchain audit technologies with the ability to review cryptocurrency business transactions.

EY Blockchain Analyzer is a proprietary technology designed to support EY audit teams as they perform audits for companies using cryptocurrencies. It will lay the foundation for testing of blockchain assets, liabilities, equity and smart contracts as companies adopt blockchain technologies.

The EY Blockchain Analyzer will help audit teams in gathering an organization’s entire transaction data from multiple blockchain ledgers. Auditors can then interrogate the data and perform analysis of transactions, reconciling and identifying transaction outliers.

The technology has been designed to support testing of multiple cryptocurrencies including BitCoin, Ether, BitCoin Cash, LiteCoin, and a number of other crypto-assets managed or traded by exchanges or asset management firms.

Jeanne Boillet, EY Global Assurance Innovation Leader, said: “As digital technology continues to advance, we are focused on developing innovative approaches to the audit process and providing confidence and trust to the capital markets. As companies are also focusing on how they embed technologies like blockchain into their financial processes, we are innovating the audit to meet their evolving needs and those of investors.”

The firm’s experience in working with investment funds, exchange platforms, cryptocurrency mining companies and wallet providers played into the development of the blockchain technology.

Paul Brody, EY Global Innovation Blockchain Leader, said understanding exchanges and cryptocurrencies is the first step in EY’s ability to develop tools to test various blockchain-based business contracts.

“These technologies lay the foundation for automated audit tests of blockchain assets, liabilities, equities and smart contracts. EY Blockchain Analyzer will be utilized by the auditor to analyze transactions on a blockchain and help provide insight to the finance function,” Mr. Brody said.

The next phase will include multiple pilots to scale the technology, including the development of customized regulatory compliance and reporting nodes.

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