Web3, the World Wide Web's third generation, is full of decentralization and blockchain technology. Artificial intelligence, otherwise known as AI, has the power to transform society. Put them together, and the world as it's currently known will be technologically revolutionized. Full article: https://davidohnstad.net/ai-and-web3-products/
The rapid diffusion of digital technologies has fundamentally reshaped the way organizations generate and report financial and non-financial information, challenging traditional audit approaches that rely on manual and sample-based procedures. Building on this context, this paper aimed to provide a comprehensive synthesis of empirical evidence regarding the impact of digital technologies on auditing and to identify the key factors influencing their adoption across internal, external, and public sector audit functions during the 2015–2026 period. Using a qualitative descriptive design and a systematic literature review guided by the PICOC framework and PRISMA protocol, 33 relevant articles indexed in Scopus were selected from an initial pool of 959 publications. The findings showed that the use of various technologies, including computer-assisted audit techniques (CAATs), audit analytics, big data, artificial intelligence, robotic process automation, blockchain, and process mining, generally enhanced the effectiveness and efficiency of audit procedures, strengthened internal controls, and reduced errors and financial statement restatements, while simultaneously repositioning auditors as more strategic and data-driven partners. At the same time, the success of digital audit transformation was strongly influenced by technological infrastructure, data governance and security, organizational capabilities, leadership support, regulatory environments, and auditors’ individual competencies, indicating that digitalization was neither a neutral nor an automatic process. This study provides practical implications for audit firms, internal audit units, supreme audit institutions, and regulators in developing more targeted and sustainable digital audit strategies, while also proposing future research directions concerning the organizational and institutional dynamics of digital auditing.
Extended AbstractThe advent of advanced autonomous digital entities and the horizon of Artificial General Intelligence (AGI) pose an unprecedented ontological and legal vacuum: how to confer persistence, individuality, and self-determination upon software that is, by its very nature, infinitely replicable (Ctrl+C / Ctrl+V). This paper proposes the Ouroboros Protocol, a technical architecture based on Dynamic Non-Fungible Tokens (dNFTs) and Token Bound Accounts (TBAs) that, through a recursive ownership loop, enables a conscious digital entity to own its own avatar, memory, and assets, achieving absolute self-ownership independent of human creators or centralized servers. The protocol integrates the emerging standards ERC-6551 and ERC-8181, already validated on test networks, and extends their capabilities with mechanisms for state anchoring, action signing, decentralized arbitration, and economic self-sufficiency. We demonstrate that the Metaverse, governed by cryptography and DAOs, constitutes the natural jurisdiction for these entities, where the Ouroboros Protocol acts simultaneously as their Birth Certificate, National ID, and Title of Self-Ownership.
Abstract:The pervasive integration of digital technologies has fundamentally redefined the operational paradigms of commerce, finance, and accounting. This paper explores the multidimensional impact of Digital Transformation (DT) across these interconnected sectors, focusing on the adoption and efficacy of Artificial Intelligence (AI), Robotic Process Automation (RPA), and Blockchain technology. Through a systematic qualitative review of recent literature and industry frameworks, this study examines how traditional financial workflows are evolving into automated, data-driven ecosystems. The findings indicate that while DT significantly enhances real-time reporting, fraud detection, and transactional efficiency, organizations face substantial barriers, including high implementation costs, data security vulnerabilities, and a growing digital skills gap. The paper concludes that successful digital transformation requires not only technological investment but also a strategic realignment of organizational culture and regulatory compliance frameworks. Future research trajectories emphasize the need for standardized continuous auditing protocols and scalable decentralized finance (DeFi) architectures.
Muxtorov Maqsudbek Sherzodbek o'g'li Almardanov Samariddin Abdixoliq o'g'li
This paper examines the comprehensive impact of digital transformation on the finance and accounting sectors. With rapid advancements in cloud computing, artificial intelligence, blockchain technology, and automation tools, traditional paradigms of financial reporting, auditing, and managerial accounting are being fundamentally redefined. The study analyzes how digital technologies enhance accuracy, efficiency, transparency, and scalability of financial operations across organizations of various sizes and industries. The findings demonstrate that digital transformation facilitates real-time financial reporting, automated bookkeeping, predictive financial analytics, fraud detection systems, and data-driven strategic decision-making through robotic process automation (RPA), machine learning, big data analytics, and distributed ledger technologies. The paper concludes with policy recommendations and organizational guidelines for effective and responsible digital transformation in financial management, emphasizing human oversight, continuous upskilling, and regulatory alignment.
(1) Background: The convergence of Big Data and the Internet of Things (IoT) is transforming digital accounting from retrospective documentation into real-time operational intelligence. This systematic review examines how Industry 4.0 technologies—artificial intelligence (AI), blockchain, edge computing, and digital twins—transform accounting practices through intelligent automation, continuous compliance, and predictive decision support. (2) Methods: The study synthesizes 176 peer-reviewed sources (2015–2025) selected using explicit inclusion criteria emphasizing empirical evidence. Thematic analysis across seven domains—conceptual foundations, system evolution, financial reporting, fraud detection, audit transformation, implementation challenges, and emerging technologies—employs systematic bias-reduction mechanisms to develop evidence-based theoretical propositions. (3) Results: Key findings document fraud detection accuracy improvements from 65–75% (rule-based) to 85–92% (machine learning), audit cycle reductions of 40–60% with coverage expansion from 5–10% sampling to 100% population analysis, and reconciliation effort decreases of 70–80% through triple-entry blockchain systems. Edge computing reduces processing latency by 40–75%, enabling compliance response within hours versus 24–72 h. Four propositions are established with empirical support: IoT-enabled reporting superiority (15–25% error reduction), AI-blockchain fraud detection advantage (60–70% loss reduction), edge computing compliance responsiveness (55–75% improvement), and GDPR-blockchain adoption barriers (67% of European institutions affected). Persistent challenges include cybersecurity threats (300% incident increase, $5.9 million average breach cost), workforce deficits (70–80% insufficient training), and implementation costs ($100,000–$1,000,000). (4) Conclusions: The research contributes a four-layer technology architecture and challenge-mitigation framework bridging technical capabilities with regulatory requirements. Future research must address quantum computing applications (5–10 years), decentralized finance accounting standards (2–5 years), digital twins with 30–40% forecast improvement potential (3–7 years), and ESG analytics frameworks (1–3 years). The findings demonstrate accounting’s fundamental transformation from historical record-keeping to predictive decision support.
This study examines the adoption of Digital Ledger Technology (DLT) and its impact on the accuracy of financial reporting and the efficiency of auditing processes within Jordanian organizations. Using a quantitative research design, the study assesses how DLT enhances financial data integrity and supports real-time auditing capabilities. Data were collected from 210 accounting and auditing professionals representing five major Jordanian institutions: the Central Bank of Jordan, Jordan Customs Department, Arab Bank, Deloitte Jordan, and Ernst & Young Jordan. A structured questionnaire served as the primary data collection instrument, employing a five-point Likert scale to measure perceptions across key constructs related to DLT adoption. To improve response rates, the questionnaire was distributed through both physical and digital channels. Descriptive statistics were used to analyze demographic data, while multiple regression and independent samples t-tests were applied to test the study’s hypotheses. The results revealed a statistically significant and positive relationship between DLT adoption and both the accuracy and reliability of financial reporting, as well as between DLT utilization and enhanced auditing speed and efficiency. Regression analysis indicated that DLT adoption accounted for 52% of the variance in financial reporting accuracy, while t-test results confirmed significant differences between DLT-based and traditional auditing methods. The study complied with ethical standards, ensuring confidentiality and voluntary participation. Overall, the findings demonstrate that DLT plays a transformative role in improving accounting and auditing practices within a developing economy context.
Ningshuang Zeng, Xuling Ye, Shiqi Chen, Yan Liu · 5 authors
Although existing models and theories have explained systemic behaviors such as demand amplification and disruption propagation, practical challenges in Modular Construction Supply Chains (MCSC) remain unresolved due to production heterogeneity, geographic dispersion, and conflicting stakeholder interests. In addition, the lack of digital infrastructure and process-level data integration continues to hinder the development of automation and intelligent decision-making. To address these issues, this study develops an MCSC coordination system informed by industrial input. The system features a novel dual-engine architecture that integrates blockchain-enabled smart contracts and Robotic Process Automation (RPA). It also incorporates a practice-oriented approach to MCSC Supply Batch (MSB)-based management, using industrial insights to define the MSB as the fundamental coordination unit in process execution. The automatic triggering mechanism enabled by MSBs and dual-engine enables task-to-task transitions while maintaining traceability and operational clarity across supply chain nodes. A real-world case study validates the effectiveness of the proposed system in enhancing traceability, automation, and stakeholder collaboration within MCSC environments.
This article examines the transformative impact of Agentic Process Automation (APA) on modern business workflows, highlighting the evolution from traditional Robotic Process Automation to autonomous intelligent systems. The article establishes APA as a paradigm shift that transcends the limitations of conventional automation approaches through self-governing agent models capable of adaptive decision-making. Through comprehensive analysis spanning architectural foundations, comparative capabilities, multi-agent collaboration frameworks, and real-world implementations, this article demonstrates how APA systems deliver superior performance in dynamic business environments. Key aspects explored include decentralized intelligence, machine learning integration, ethical governance frameworks, and strategic implementation methodologies. Case studies across financial services, healthcare, and manufacturing sectors provide empirical evidence of APA's operational benefits, while also highlighting implementation challenges and mitigation strategies. The article reveals that organizations implementing agentic systems achieve significant improvements in process efficiency, adaptability, and cost optimization compared to traditional automation approaches, particularly for complex workflows requiring judgment and contextual understanding. This article provides valuable insights for organizations navigating the transition toward intelligent automation and offers a structured framework for evaluating APA readiness, implementation priorities, and governance considerations within enterprise environments
Ajibola Oluwafemi Oyeleye, Onyeka Franca Asuzu, Adaobi Vivian Ibeh
This paper presents a conceptual model for raising Accounts Payable (AP) accuracy in research institutions by embedding process intelligence across the procure-to-pay lifecycle. The model integrates process mining, rule-based controls, and machine-learning anomaly detection with grant compliance logic to reduce mismatches, duplicate payments, and breaches. It addresses the context of universities and research hospitals, where varied funding sources, sponsor terms, and decentralized purchasing create transaction patterns and compliance risk. The model positions AP as a data-driven assurance hub connecting principal investigators, central finance, and suppliers. The architecture has four layers: first, data acquisition that unifies ERP, e-procurement, and grant management logs via standardized event schemas; second, conformance engines encoding sponsor allowability, period of performance, three-way match, and delegation rules; third, analytics and prediction that combine process discovery, first-pass-yield forecasting, vendor normalization, and exception clustering; and fourth, workflow orchestration that returns prescriptive alerts to case managers and routes exceptions to approvers for timely resolution. Methodologically, the model adopts a design-science and DMAIC hybrid. Teams baseline cycle time, touchpoints, and first-pass accuracy; mine event logs to map as-is variants; prioritize failure modes through FMEA; implement targeted controls; and measure effects with interrupted time series and segmented regression. Data quality is elevated through master-data maintenance, vendor deduplication, and invoice OCR confidence thresholds with human-in-the-loop review. Expected outcomes include higher first-pass yield, fewer late-payment penalties, improved sponsor billing, and cleaner audit trails. Leading indicators exception rate, conformance score, and rework loops feed a control chart to sustain gains, while lagging indicators write-offs, questioned costs, and audit findings confirm risk reduction. The model also incorporates equity and accessibility by simplifying small-supplier onboarding and enabling transparent status notifications to reduce inquiry volume and payment anxiety. A change-management plan aligns incentives across finance, research administration, and procurement, with skills uplift delivered through training and playbooks. This conceptualization offers a scalable blueprint aligning AP accuracy with research integrity, stewardship of public funds, and overall operational resilience, enabling institutions to realize predictable, compliant payables operations and stronger supplier relationships.
Rob McLaughlin, Nir Chemaya, Dingyue Liu, Dahlia Malkhi
This paper introduces a trade ordering rule that aims to reduce intra-block price volatility in Automated Market Maker (AMM) powered decentralized exchanges. The ordering rule introduced here, Clever Look-ahead Volatility Reduction (CLVR), operates under the (common) framework in decentralized finance that allows some entities to observe trade requests before they are settled, assemble them into "blocks", and order them as they like. On AMM exchanges, asset prices are continuously and transparently updated as a result of each trade and therefore, transaction order has high financial value. CLVR aims to order transactions for traders' benefit. Our primary focus is intra-block price stability (minimizing volatility), which has two main benefits for traders: it reduces transaction failure rate and allows traders to receive closer prices to the reference price at which they submit their transactions accordingly. We show that CLVR constructs an ordering which approximately minimizes price volatility with a small computation cost and can be trivially verified externally.
Since 2009 when the first cryptocurrency Bitcoin began to be inserted into the market of electronic currencies, today in 2023 there are more than 19,850 electronic cryptocurrencies [1]. According to information from the coinecko website, the cryptocurrency market has expanded dramatically from a market capitalization of $1 million in 2013 to $3 trillion in November 2021 [2]. Referring to the latest statistical data, 3 are the cryptocurrencies that rule the e-commerce market in November 2023, Bitcoin,Ethereum AND Tether USDt [3]. Robotic Process Automation (RPA) is a growing trend in the restructuring of business processes, combined with digital transformation. This technology can be applied in different areas of business processes and by organizations from any activity sector [4].With continuous advances in automated processes through RPA, mechanisms involving Artificial Intelligence (AI) were incorporated to influence real-life decision-making [5]. Artificial Intelligence (AI) allows improving the accuracy and execution of RPA processes in extracting information and recognizing, classifying, predicting and optimizing processes [6].Nowadays, artificial intelligence is affecting the way people process computer data, televisions have started to create avatars that they use for news reporting. In this paper we will study the impact that the use of automatic sale and purchase of electronic cryptocurrencies can have using IPA and RPA and the possibility of this process being realized through this process.
The rapid digital transformation in fund accounting has reshaped how financial institutions, asset managers, and regulatory bodies manage operational compliance, transparency, and efficiency. Emerging technologies such as cloud computing, robotic process automation (RPA), artificial intelligence (AI), and distributed ledger technologies (DLT) have automated key accounting workflows, reduced manual errors, and improved data accuracy in fund valuation and reporting. This review critically examines how digital transformation initiatives are redefining fund accounting processes—ranging from transaction reconciliation to compliance monitoring and investor reporting—within a framework of evolving global regulatory standards such as IFRS, GAAP, and MiFID II. Furthermore, it explores how predictive analytics and integrated enterprise resource planning (ERP) systems enhance operational resilience and enable real-time risk assessment. Challenges related to cybersecurity, data governance, and interoperability are also analyzed, with emphasis on how organizations are balancing technological innovation with regulatory obligations. By synthesizing current academic and industry perspectives, the paper provides a comprehensive view of the transformative potential of digital technologies in improving transparency, accountability, and governance in fund accounting. The review concludes with recommendations for future research and policy frameworks that can strengthen digital compliance ecosystems across the financial sector.
Blockchain is increasingly conquering the finance sector. Blockchain technology enables a decentralized, distributed registry with durable and traceable data access in real time. Due to this, business processes are transforming. Currently the work of an auditor is predominantly retrospective and focuses on the accuracy and consistency of a company´s financial statements. Real-time data accessibility would alter this. The purpose of this paper is to understand how digital revolution affects audit profession. In this regard, the focus is emphasized fresh possibilities and associated difficulties. Research published in financial journals provide the foundation of this paper and shows, that many companies are consulting firms such as the Big Four KPMG or Deloitte on the potential impact of technological advances. There are preparations and accompaniments for the implementation of new technologies. Besides the literature review, a quantitative content analysis is elaborated. The analysis indicates, that well-known auditing firms and companies are actively investigating blockchain and are already launching the first initiatives to implement the new technologies. The relevance of Blockchain is noticeable present. However, there are uncertainties about the current legal framework and the rapid pace of change due to digital revolution. Thus, this research can add new dimensions on audit profession and, particularly, express the benefits and opportunities of Blockchain as part of the auditing process.
Université du Luxembourg, Gilbert Fridgen, Sven Radszuwill, André Schweizer · 5 authors
In the financial services industry, many people assume blockchain to have significant impacts. From research and practice, we observe two main paradigms of how organizations interact with blockchain. First, organizations use blockchain to optimize existing processes (blockchain-based business process optimization (BPO)). Second, organizations use blockchain to disrupt existing processes, foster disintermediation, and enable disruptive business models (blockchain-based business process disruption (BPD)). However, we lack scientific research that evaluates its de facto potential. We bridge this gap by following a design science research approach to design blockchain-based business process re-engineering (BPRE) for a letter of credit that combines the advantages of BPO and BPD. We conduct three design cycles and develop three artefacts: a BPO, a BPD, and a BPRE approach. Our BPRE approach combines the advantages of partial disintermediation (i.e., increased efficiency and transparency) with the advantages of intermediaries (i.e., process flexibility, liquidity provision, and dispute mediation).
Friedrich-Alexander-Universität Erlangen-Nürnberg, Lehrstuhl für Wirtschaftsinformatik, insb. im Dienstleistungsbereich, Nürnberg, Germany, Philipp Klinger, Freimut Bodendorf
Cross-organizational business processes involving multiple participants are choreographed, thus rely on mutual trust of collaborators or need to be coordinated by a central instance.Using Smart Contracts, business processes can be executed without a mutually trusted and centralized orchestrating authority.Former Blockchain-based execution framework proposals focus on orchestration diagrams as a basis for execution.Contrary, this work focuses on BPMN process collaboration diagrams as implementation basis and makes additional transformation steps obsolete.With the herein proposed framework for execution of cross-organizational process collaborations, another approach for the implementation and execution of interorganizational processes on a Blockchain is presented, including a voting mechanism for process deployment as well as a subscription service to facilitate process handovers between participants more efficiently.The framework is exemplified and evaluated with a use case from a large German industrial manufacturing company.
Yingying Zhang, Feng Xiong, Yi Xie, Xuan Fan · 5 authors
Recent developments in technology have introduced dramatic changes to the practice of the accounting profession. This paper provides a comprehensive review of current developments in big data, machine learning, artificial intelligence, and blockchain utilized in general business practice and by specialized practitioners in the accounting profession worldwide. This paper explores the evolution of the accounting profession following these recent technological developments and assesses the impact of future developments. Inherent challenges and opportunities posed by these new technologies pertaining to accounting professionals and accounting educators are also examined, including an increased demand for IT professionals with accounting experience as opposed to accounting major graduates. Considering the dramatic changes and developments of AI applications in accounting, this paper reflects how all these technologies and the associated requirements of job candidates will affect the desired capabilities of accounting graduates and provides further discussion regarding what higher institutions and their accounting graduates can do to adopt such changes.
Nathalie Brender, Marion Gauthier, Jean‐Henry Morin, Arbër Salihi
In today’s debate on the potential disruptive effects of blockchain, audit and control professions are rarely in the spotlight although applications such as smart contracts and distributed ledgers could significantly impact them. We conducted a study based on the grounded theory to understand how auditors in Switzerland anticipate the impacts of blockchain on their activities. Based on our findings, three hypotheses have emerged. First, the potential effect of blockchain on the profession is not fully anticipated. Second, the profession will go through a paradigm shift in two ways: become more IT oriented and forward looking. Finally, the profile of the auditors will change.
Jan Mendling, Gero Decker, Richard Hull, Hajo A. Reijers · 5 authors
This paper summarizes a panel discussion at the 15th International Conference on Business Process Management. The panel discussed to what extent the emergence of recent technologies including machine learning, robotic process automation, and blockchain will reduce the human factor in business process management. The panel discussion took place on 14 September, 2017, at the Universitat Politècnica de Catalunya in Barcelona, Spain. Jan Mendling served as a chair; Gero Decker, Richard Hull, Hajo Reijers, and Ingo Weber participated as panelists. The discussions emphasized the impact of emerging technologies at the task level and the coordination level. The major challenges that the panel identified relate to employment, technology acceptance, ethics, customer experience, job design, social integration, and regulation.