Block chain Technology and Future of External Auditing in Nigeria

Abstract

The main objective of this study was to examine the effect of blockchain technology on future of external auditing in Nigeria. Decentralized network and consensus mechanism were the proxies for blockchain technology. Thus, two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using least squares regression model operated with E-Views.12. Survey design was adopted and data for the study was obtained through the use of e-questionnaire survey sent to the various Staff WhatsApp Group Platform of the selected audit firms in Anambra State Nigeria. The results of the study reveal that the use of decentralized network has positive and significant effect on the future of external auditing in Nigeria at 1% level of significance. Also, the use of consensus mechanism in auditing has positive and significant effect on the future of external auditing in Nigeria at 5% significant level. Based on this, the study concludes that blockchain technology ensure the future of external auditing in Nigeria. In lieu of the findings of the study, the study recommends for the continual use of decentralized network in auditing as the future of external auditing lies on it. Also, the use of consensus mechanism should also be encouraged as it ensures accuracy and reliability in audit reporting.