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The new ecosystem of the digital age: Impact of blockchain technology on the accounting environment and financial statement fraud detection

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Detalhes bibliográficos
Resumo:The agency theory is an underlying framework for the installation of corporate governance roles in business enterprises. Their function to shield from financial statement fraud remains a shield with lacks that allow the occurrence of unsolved and intrinsic misbehaviour in business conduct. Technological developments have not been able to solve this issue, still waiting for a liberator from these well-known chains. One is seen in the use of Blockchain technology, the framework that builds trust among untrusting participants in networks such as Bitcoin or Ethereum. Since its mainstreaming popularity, researchers, corporations, and advocates foresee a great impact on the accounting industry that stems from the use of Blockchain. Taking this opportunity, this work investigates on these assumptions by reviewing literature on the domain, using case studies of former financial statement frauds to frame the fraudster’s profile, and applying it in the suggested scenario of blockchain-based accounting. By doing so, the use of permissioned blockchains raises doubt in a scenario that is shaped by management override activities, causing severe adversely affections to tiers in an ecosystem that trusts a technology and its “immutable” records.
Autores principais:Müller, Simon
Assunto:Agency theory Financial statement fraud Blockchain technology Distributed ledger technology Management override Teoria da agência Fraude de demonstrações financeiras Tecnologia de cadeia de bloqueio Tecnologia de livro-razão distribuído Anulação de gestão
Ano:2021
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:ISCTE
Idioma:inglês
Origem:Repositório ISCTE
Descrição
Resumo:The agency theory is an underlying framework for the installation of corporate governance roles in business enterprises. Their function to shield from financial statement fraud remains a shield with lacks that allow the occurrence of unsolved and intrinsic misbehaviour in business conduct. Technological developments have not been able to solve this issue, still waiting for a liberator from these well-known chains. One is seen in the use of Blockchain technology, the framework that builds trust among untrusting participants in networks such as Bitcoin or Ethereum. Since its mainstreaming popularity, researchers, corporations, and advocates foresee a great impact on the accounting industry that stems from the use of Blockchain. Taking this opportunity, this work investigates on these assumptions by reviewing literature on the domain, using case studies of former financial statement frauds to frame the fraudster’s profile, and applying it in the suggested scenario of blockchain-based accounting. By doing so, the use of permissioned blockchains raises doubt in a scenario that is shaped by management override activities, causing severe adversely affections to tiers in an ecosystem that trusts a technology and its “immutable” records.