A Transaction on the Blockchain: An AIS Perspective, Intro Case to Explain Transactions on the ERP and the Role of the Internal and External Auditor

Abstract

ABSTRACT This case promotes discussions about blockchain technology. It shows a transaction execution scenario and its tax implications. The case provides (1) an overview of the steps required to install a Digital Wallet; (2) an explanation of the need to add cryptocurrencies to the wallet in order to transact on the blockchain; (3) an overview of executing a transaction, in which an accounting consulting service is provided in the exchange of a cryptocurrency; (4) methods to review the existing transaction, from the service provider side, the service receiver side, and from the blockchain side, with a highlight of the role of both internal and external auditors; (5) clarifies the importance of dealing with cryptocurrencies, given that the IRS identifies cryptocurrencies as properties; and (6) a reflection on the link between a company ERP system and the transaction information on the blockchain.