The Influence of Blockchain Adoption on Audit Efficiency and Fraud Detection
DOI:
https://doi.org/10.35870/ljit.v4i2.8541Keywords:
Blockchain; Audit Efficiency; Fraud Detection; Continuous Auditing; Smart Contracts; Financial TechnologyAbstract
This article examines how the adoption of blockchain technology influences audit efficiency and fraud detection within modern accounting practice. As financial transactions increasingly move into distributed ledger environments, external auditors are compelled to revisit the assumptions, procedures, and tools that underpin traditional assurance work. Through a systematic review of contemporary auditing, accounting information systems, and financial technology literature, this study identifies the mechanisms through which blockchain reshapes the audit process. The findings indicate that blockchain adoption enhances efficiency primarily by enabling real-time access to immutable transaction records, reducing reliance on sampling-based procedures, automating control testing through smart contracts, and facilitating continuous auditing. At the same time, the technology strengthens fraud detection capacity by improving the traceability of transactions, increasing the difficulty of retroactive manipulation, and supporting forensic analysis of anomalous patterns. However, the realization of these benefits is conditional on several factors, including auditor competence, integration with legacy systems, regulatory clarity, data privacy constraints, and the risk that fraud shifts to points where the blockchain boundary intersects with off-chain processes. The review concludes that blockchain does not eliminate the need for professional skepticism; rather, it redefines the focus of auditor judgment from verifying recorded transactions to evaluating the reliability of the underlying technology environment and its governance. Practical implications for audit firms, standard-setting bodies, and regulators are discussed.
Downloads
References
Appelbaum, D., Kogan, A., & Vasarhelyi, M. A. (2017). An introduction to data analysis for auditors and accountants. Auditing: A Journal of Practice & Theory, 36(4), 1-13. https://doi.org/10.2308/ajpt-51762
Bonyuet, D. (2020). Blockchain: A new paradigm for auditing. Journal of Emerging Technologies in Accounting, 17(1), 35-43. https://doi.org/10.2308/jeta-2020-007
Coyne, J. G., & McMickle, P. L. (2017). Can blockchains serve an accounting purpose? Journal of Emerging Technologies in Accounting, 14(2), 101-111. https://doi.org/10.2308/jeta-51910
Dai, J., & Vasarhelyi, M. A. (2017). Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), 5-21. https://doi.org/10.2308/isys-51804
Fuller, S. H., & Markelevich, A. (2020). The impact of blockchain on the audit profession. Journal of Emerging Technologies in Accounting, 17(1), 45-58. https://doi.org/10.2308/jeta-2020-008
Kokina, J., Mancha, R., & Pachamanova, D. (2017). Blockchain: Emergent industry adoption and implications for accounting. Journal of Emerging Technologies in Accounting, 14(2), 91-100. https://doi.org/10.2308/jeta-51911
Liu, M., Wu, K., & Xu, J. J. (2019). How will blockchain technology impact auditing and accounting? Permissionless versus permissioned blockchain. Journal of Emerging Technologies in Accounting, 16(2), 15-31. https://doi.org/10.2308/jeta-52540
Lombardi, R., de Villiers, C., Mio, C., & Vasarhelyi, M. A. (2022). The disruption of blockchain in auditing: A literature review and research agenda. Accounting, Auditing & Accountability Journal, 35(7), 1534-1555. https://doi.org/10.1108/AAAJ-10-2020-4992
Rozario, A. M., & Thomas, C. (2019). Reengineering the audit with blockchain and smart contracts. Journal of Emerging Technologies in Accounting, 16(1), 21-35. https://doi.org/10.2308/jeta-52411
Rozario, A. M., & Vasarhelyi, M. A. (2018). Auditing with smart contracts. International Journal of Digital Accounting Research, 18, 1-27. https://doi.org/10.4192/1577-8517-v18_1
Schmitz, J., & Leoni, G. (2019). Accounting and auditing at the time of blockchain technology: A research agenda. Australian Accounting Review, 29(2), 331-342. https://doi.org/10.1111/auar.12286
Tschorsch, F., & Scheuermann, B. (2016). Bitcoin and beyond: A technical survey on decentralized digital currencies. IEEE Communications Surveys & Tutorials, 18(3), 2084-2123. https://doi.org/10.1109/COMST.2016.2535718
Vasarhelyi, M. A., Alles, M. G., & Kogan, A. (2004). Principles of analytic monitoring for continuous assurance. Journal of Emerging Technologies in Accounting, 1(1), 1-21. https://doi.org/10.2308/jeta.2004.1.1.1
Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7-31. https://doi.org/10.1093/rof/rfw074
Zhang, Y., Wen, J., & Xiong, F. (2020). Blockchain and audit: A review and research agenda. Journal of Accounting and Public Policy, 39(5), 106745. https://doi.org/10.1016/j.jaccpubpol.2020.106745
Zheng, Z., Xie, S., Dai, H. N., Chen, X., & Wang, H. (2018). Blockchain challenges and opportunities: A survey. International Journal of Web and Grid Services, 14(4), 352-375. https://doi.org/10.1504/IJWGS.2018.095647
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Hadi Nurhadi, Mahdi Mahdi, Irdawati Irdawati, Meliana Meliana

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.