By Michael P Cangemi
Abstract: This is an introduction and brief review of a long and rather complex study of issues related to internal controls over financial reporting (ICFR) and auditing the new distributed ledger technology known as Blockchain Ledgers. The report points out many of the control issues related to Blockchain Ledgers (BC), including potentially advantageous characteristics such as immutability and shared ledgers. It also addresses the new risks and needs for additional controls for which the search for solutions continues. Audit procedures have always followed technology advances, but they will never impede the innovation and related creative destruction that come with advancing business models. Much more work lies ahead, nevertheless, this COSO report is an excellent summary that will inform discussions about new control methods and methodologies. The COSO report has value for all readers including GRC professionals as well as C-suite and board members. However, the primary beneficiaries will be in tech support to the CFO and Chief Audit Executives, BC developers in company operations, and BC specialists in public accounting firms. This summary should inform all readers.
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