Automated accounting and auditing in the platform of blockchain technology

The impact of technology on societies, industries, tools, methods and lifestyles has been both profound and pervasive. The result of this transformation is the digital revolution, which is expanding rapidly and has created the world of data and the information age. As a result, today’s world is characterized by a significant degree of change and accelerated dynamics that can be attributed to the Age of Uncertainty. The consequences of uncertainty and the needs arising from it have given rise to the world of technology and the digital revolution, which is developing rapidly. This issue affects various scientific and practical fields more than ever before. The modernization resulting from these technologies requires an understanding of emerging trends and their consequences. This understanding is crucial in order to address the desires, wishes, needs, necessities and requirements that arise from foresight, survival, perfectionism and human comfort.

The world of technology undoubtedly affects every aspect of business management, including accounting and auditing. The nature of the accountant’s work also evolves in accordance with the technological progress caused by the development of the society. This issue can be understood by looking at the history of accounting. In the distant past, accounting was done with stones, nails, blocks, inscriptions and skin. Later, accounting was done manually using tools such as paper and pencil. Often it took several hours or several days to write the accounting books (Toťová, 2020). The methods utilized in the field of accounting have experienced a significant transformation over time.

Accounting has evolved over the years from its early days and has moved from the form of manual accounting to the age of technology which can be called digital accounting (Ogaluzor, 2019). The previous assumptions of a good accountant were above all the ability to write, read, be careful and pay attention. With the impact of technology on the entire world economy, the changing requirements of companies have become work prerequisites, including in the accounting profession. The change in technology has also changed the nature of accounting work; and except a few cases, pencil and paper are no longer used to record accounting records; and most of the work is done by technologies and software that are programmed directly for the company’s needs (Toťová, 2020). Therefore, it can be said that the accounting profession is expanding its boundaries. The skills required for it are evolving. Advances in technology have freed accountants from the stress of mundane and simple tasks such as manual data entry so they can pursue higher value tasks (Modesta Amaka & Victoria Nnenna, 2020). So, just like any other activity in the world, accounting has its share of technological disruption. The focus of accounting is numbers; and the most important aspect of digitization is numbers. With this, we should freely believe that the accounting profession will be more strongly affected by these developments in the future (Ogaluzor, 2019).

Accounting and auditing has taken a new form with the advent of computers. The continuous development and optimization of accounting software is proof of the claim that these technologies are trying to meet the maximum issues and topics of accounting and auditing and the needs of stakeholders (Chowdhury, 2021). Thus, the technological advances are now affecting almost all elements of the accounting profession. On the other hand, the accounting industry is recognized as a sector where digitization is likely to accelerate (Mohammed & Ebo, 2019). They are being directly influenced by advanced technologies, particularly in terms of technological agility and professional growth (Rydzak, Przybylska, Trębecki, & Sellitto, 2023). In other words, the accounting and auditing industry is expected to become increasingly automated. Professions and industries must prepare for this transformation and understand their business needs to survive in an increasingly competitive environment (Amirul, Mail, Bakar, & Ripain, 2017). Therefore, as the world is subject to constant change, globalization and the ever-increasing development of technology have stimulated the need for economic innovation to achieve performance and progress. The field of accounting services is also directly impacted by the evolution and adoption of information technology due to the nature of its specific activities (Ţugui Al & Gheorghe 2016). It started with general accounting software, management accounting, inventory of materials and goods (warehouse) and employee management. This led to the development of organizational resource planning systems. Currently, advances in the field of cognitive technologies include automation, robotic process, machine learning, computer visualization, along with elements of artificial intelligence, cloud data storage and manipulation of large data sets (Stanciu, 2016), Internet of Things, Internet of Everything, cryptocurrencies and blockchain have expanded.

The main features of blockchain are transparency, decentralization, immutability, tamper resistance, strong authentication, synchronous networks and consensus (Iansiti & Lakhani, 2017; Pattison, 2017; Swan, 2015; Yermack, 2017). Blockchain’s features and capabilities make it useful in many issues and topics. Since accounting is the business language of the social economy. The deep application of blockchain technology in accounting and auditing can be the development of this industry and also play a more and more important role in the whole social economy. Therefore, the Institute of Chartered Accountants in England and Wales (ICAEW) believes that: Blockchain is not a single technology, but rather a protocol – a way of doing things – for recording transactions. Unlike the Internet, in which data are shared, in a blockchain ownership can be transferred from one party to another. Blockchain is a desirable model for several reasons. For example, in a market with many transacting parties, it could remove the need to reconcile disparate ledgers. Being distributed between all users also eliminates outages and removes the cost of having to pay a central authority to maintain the accuracy of the ledger. Any participant in the ledger can trace all previous transactions, allowing for increased transparency and blockchain to self-audit (ICAEW, 2018). Research by ICAEW found that the looming threat of automation and digitization will force more than 51% of accountants to leave the profession and start their own business within five years. ACCA, IMA, KPMG, Forbes, Deloitte, CIMA have also published similar research and almost identical findings.

Accountancy organizations, namely, ICAEW, the Association of Chartered Accountants (ACCA), the Chartered Institute of Management Accountants (CIMA), the Chartered Institute of Public Finance and Accountancy (CIPFA) and the International Federation of Accountants (IFAC), all publish reports on their websites relevant to blockchain technology. For example, Deloitte, EY, KPMG and PwC lead the initiative to incorporate blockchain into their businesses to cater to changing customer demands for blockchain transactions (O’Neal, 2019).

In light of these considerations, what does the future of accounting and auditing look like? Can accounting and auditing be automated? Can technology automate accounting and auditing? Are the necessary rules and frameworks in place for accounting automation? If accounting and auditing are automated, will we no longer need human resources and will there be no accountants and auditors? How do accountants and auditors view the acceptability of the automated process? These topics are unknown, ambiguous and interesting aspects that created the reason and motivation for research in this field.

In this regard, the objective of this research is to investigate the impact of blockchain technology on the accounting and auditing professions on a global scale. Preliminary research suggests that contemporary global trends and the characteristics of this technology have the potential to establish a foundation for automated accounting and auditing. In order to address this issue, the research method employed is a combination of approaches, drawing upon the principles of future-oriented technology analysis (FTA) and the event approach. This approach is grounded in theoretical foundations and insights from international experts, facilitating a comprehensive examination of the subject matter.

The market changes we are experiencing today are much faster than ever before. Today, technology has a positive impact on agility, lean, continuous improvement, reliability and security of information systems. New technologies can make accounting and auditing easy and convenient by simplifying operations, saving time, reducing costs and increasing productivity.

For Scott (2009), the advantage of technology lies in the use of different tools to speed up the execution of the functions performed by the accountant. In this aspect, technology contributes to the operational advancement of accounting in the face of competition, given the speed and efficiency offered by technological advances. Acevedo (2019) shows that when communication in accounting firms is fast, it can help increase productivity, as well as improve decision making and facilitate business growth. According to Scott (2009), a disadvantage of technology lies in its dependence on humans. Technology is the result of human innovation; therefore, it is a product that repeats the same human mistakes. But this can be circumvented with more robust processes and with more focused specialization and training on automation. Based on this, the more we can use complex and advanced automatic algorithms and programs and the less human intervention and manipulation in the work processes, the possibility of errors and manipulation will also decrease. Therefore, advances and innovations in the world of technology have always been the focus of attention due to their competitive advantage, efficiency and effectiveness.

Technological developments, globalization and increasing competition are forcing professions to change constantly. The accounting profession is at the forefront of the professions that are and will be most affected by technological developments and globalization. It is evident that with technological developments, many digital systems that did not exist ten years ago are now actively used in the accountancy profession (Tekbas, 2018). Accounting and auditing help businesses and create jobs by providing information and reports to users. They also fulfill their social roles. However, they need to adapt to new information systems and global economic conditions in order to be more dynamic and efficient and to produce the necessary information for stakeholders with better quality and agility. On the other hand, businesses also expect professional accountants and auditors to have the skills to use information technology. Accordingly, Chen, Gillenson, and Sherrell (2002) believe that expectations for the level of competencies, skills and perspectives of professional accountants and auditors are evolving based on emerging business needs. Professional accountants should not only focus on the historical data presented in financial reports. They must look beyond the numbers; they must evaluate and explain the numbers; they must provide insight and a solution to achieve short- and long-term goals and help the business. Professionals must respond to the challenges and pressures created by the changing business landscape. They must continually develop themselves, especially as they adapt to technology, business processes, regulatory requirements and employer demands.

This issue gives them the responsibility of digital transformation and gives them the opportunity to manage the transformation. Moreover, since education is the basis for the progress of any nation, the promotion of the professions and professional education requires the promotion of society and their social and professional promotion. The accountancy and auditing professions are no longer simply reporters of events, but help entrepreneurs and managers by providing guidance and strategies. Accounting and auditing help managers to carry out their tasks correctly and flexibly, according to the needs of the market, through accurate and rapid data.

The development of technology in the accounting and auditing industry shows how these professions can change in different ways and with different effects. Scott (2009) highlights that the use of technology in accounting is an unprecedented change. Hunton (2002) found that the services of public accountants have evolved and the scope of assurance has expanded to include services that determine the reliability, integrity and credibility of information systems and electronic commerce systems.

In today’s society, digitization is perhaps the most powerful force of change on a global scale. Digitization is defined as the transfer of analog data to digital collections (Omoalu Simon, 2019). According to the Collins English Dictionary, Digitization, less commonly digitalization, is the process of converting information into a digital (i.e. computer-readable) format, in which the information is organized into bits. The product is the depiction of an object, image, sound, document or signal (commonly an analog signal) by creating a series of statistics that define a separate set of its points or samples.

In practice, digitized data are in the form of binary numbers that allow for computer processing and other operations. Digitization is of crucial importance, because it allows “information of all kinds in all formats to be carried with the same efficiency and also intermingled” to data processing, storage and transmission. Unlike analog data, which normally experience some loss of quality when copied or transmitted, digital data can, in theoretically, be propagated indefinitely without degradation. For this reason, it is the preferred method of preserving information for many organizations around the world (McQuail, 2000). Cambridge Culture defines digitization as the process of converting documents or information into a form that can be stored, read and understood by computers. Bogasiu and Ardeleanu (2021) state that today the term digitalization refers to innovation in business models and processes that benefit from and use digital products. In a broader context, digitization means enabling, improving and transforming business models or activities using functions, models, processes or activities, digital technologies and data to achieve a predetermined goal. Digital transformation is possible only by creating and developing a culture of creativity in the business environment. This requires changing fundamental business components or business processes. At the same time, digitalization can mean a medium, a space or a process. Our digital workplace refers to digital elements, digital tools, social collaboration platforms or integrated communication platforms. According to Unruh and Kiron (2017), digitization involves the process of converting products into digital format and the concomitant invention that ensure digitalization. Therefore, Digitalization is concerned with the innovation of business processes and models that feature digital opportunities. However, digital transformation requires the reconstruction of social systems, institutions and economies with digital technologies.

Digitalization indicates a different idea in the way business organizations manage and conduct their business activities. Openness, ubiquity and sharing are usually the main characteristics features of this idea (Mancini, Lamboglia, Castellano, & Corsi, 2017). As a result, data and information are readily available; they are usually sourced by organizations without any restrictions. In light of digitalization, most wide-ranging data are available in real time, which has significant impact on the way organizations prepare strategic plans (Omoalu Simon, 2019). Therefore, digitalization alone will not lead to digital transformation. Therefore, transformation requires a combination of digital progress and new technologies, such as the new generation of the Internet, robotics, artificial intelligence, big data, cloud processing, the Internet of Things and blockchain. This combination can create the greatest digital transformation, which means the automation of processes and activities. Doing business in the direction of socio-economic transformation and development requires automation of processes. This is because activists and entrepreneurs are creative and innovative, looking for the smartest, most accurate, fastest and least expensive ways to advance their activities and achieve their goals.

The idea of doing things automatically by machines or other than humans has been one of the ideal goals of man during the past centuries. This idea originated from human desires to get rid of the constraints of doing repetitive and boring tasks and to improve the quality of work systems. Humans have tried to do monotonous and repetitive tasks more easily and quickly in this way, reducing the number of errors. The purpose of this work is to increase speed, quality, production, productivity and job satisfaction. The process that began in this way towards automation continued for years, until the economic goals of the industrial revolution significantly increased the speed of this process and caused its unprecedented growth.

In the manufacturing industry, the idea of work automation and automation technology is increasingly being considered due to the urgent need for equipment to speed up the production process, reduce costs, improve product quality and eliminate problems caused by human performance. However, in the past and even today, humans have played a crucial role in managing systems. With advances in technology, especially computers, it is now possible for automation to become a global trend in various human activities. Macroeconomics also supports the development of automation. On this basis, its scope has reached all aspects of human life.

Automated is written in the Greek language as “Αυτοματοποιντό” and is derived from the word Automatos, which is written in the Greek language as “αυτοματα”. Automatos means “self-acting/self-acting/acting at one’s own will”. Something that is automatic can do what it needs to do without the help of others and with minimal intervention. Automation requires the use of machines, computers and technology. Automation is used to eliminate or minimize errors, human intervention, manual processes, routine and repetitive tasks. Therefore, the work being automated is controlled and performed by technology instead of a human. The benefits of automation include increased speed, increased accuracy, increased efficiency, increased effectiveness, increased productivity, increased quality, increased durability, increased stability, increased health, increased economy, increased competitive advantage, increased reliability, increased confidence and improved working conditions. Automation can also reduce costs, reduce errors, reduce mistakes, reduce waste, reduce fraud, reduce manipulation, reduce control, reduce supervision, etc. The emergence and presence of systems automation processes are also due to their superior features. It can also have disadvantages, such as decreasing employment, increasing unemployment, more dependence on technology and the need for more specialized personnel.

The type of decision or work to be automated is the basis of the automation discussion. In his review (2018), Hoffman mentions the capabilities and scope of automation of management processes as follows: (1) automatic assembly of spreadsheets; (2) automatic report assembly; (3) automatic report validation; (4) automatic production of narrative text; (5) automatic textual review process; (6) automatic XBRL reporting; (7) automatic calibration; (8) explicit and automatic references; (9) joint review processes; (10) the centrality of virtual services. But that is not all.

The entry of software into the accounting and auditing professions has been one of the most important digital events in these professions. The development of computer software in the 1990s and the increase in the use of accounting software in the early 21st century are historic periods in the field. Understanding the roots of automated accounting prepares people for dynamic change. For example, the International Reporting Standards (IRS) first accepted electronic filing of tax returns in 1986. After that, accounting software became easier to use, eliminating the need to spend time preparing budgets, financial statements and tax returns. This issue required accounting software to comply with accepted accounting principles.

Subsequently, the confidence of companies in digitization increased and it became a necessity to improve accounting activities and to store and protect accounting data. Jurubita (2017) believes that the move towards digitization in accounting is due to the decrease in the price of software, internet-based programs and the need to access information, increasing standardization of technology, the increasing compatibility of software with the work environment, the increasing speed of data collection and the increasing storage opportunities. Data are important. But in fact, there are more factors that have driven the digitization of accounting and prepared the space for digitization and beyond.

The work situation, the development of technologies and their application in the accounting and auditing professions promise the emergence of automated accounting and auditing. Today, accounting problems have become so complex that solving them without the use of computers requires a lot of time and money. The expansion and growth of business and global trade have created a huge amount of scattered data and information for accounting and auditing operations. The huge volume of this information causes accountants and auditors to deal with tedious, time-consuming and stressful tasks. This problem causes work erosion for accountants and auditors. On the other hand, as in the past, accountants and auditors have to deal with bureaucracy, legalities and numerous roles that occupy their time every day. In general, the obvious conditions, dilemmas and problems in the field of accounting and auditing that cause these professions to move towards automation can be listed as follows:

1. The current accounting and auditing routines impose high costs for preparation, maintenance and disposal of office supplies (paper and pencils, pens and pencils, photocopying and printing, etc.), personnel costs for travel, catering and ceremonies, accommodation and other incidental costs. In addition, there is the administrative bureaucracy, which itself imposes a lot of costs on the business units from an economic point of view. It also causes an increase in cost price and a decrease in profit from an economic point of view. From a social and environmental point of view, it has also caused a lot of time, increased environmental pollutants, environmental destruction and subsequently physical and psychological effects on people.

2. There are many general and specific laws, regulations, policies, rules and standards. Yet we still see scandals and moral hazards caused by collusion, abuse, fraud, embezzlement, misrepresentation, malpractice, negligence and accounting and auditing errors. In some cases, even more and bigger than before. This important issue, in addition to increasing crime and judicial expenses, affects various economic, social, cultural and political aspects and weakens the position of the accounting and auditing profession. Moreover, this problem has forced governmental institutions and organizations, as well as the guardians of the public interest, to search for better and more favorable solutions, spending a lot of time and money in order to prevent and detect the loss of rights and the escape of criminals.

3. Dishonesty, secrecy, information asymmetry and financial transparency of economic entities have deprived society of trust, market failure, poor market efficiency and wrong decisions based on irrelevant and incorrect information.

4. Passing traditional methods and the influx of many accounting and auditing software, each of which has different advantages and disadvantages. In addition, the use of each of these software packages requires a lot of money to be spent on training, support, compliance and annual updates. The existence of this number of software and their differences have caused the confusion of the government, regulators, inspectors and auditors. The problems of this issue become more apparent when much of this software is open source and not in good condition in terms of access, database security and storage and information maintenance. This problem provides grounds for abuse, manipulation, fraud and escape. On the other hand, the knowledge of auditors and inspectors in the field of information technology and programming of this financial software is in most cases very low. This problem also increases the risk of audit and non-discovery and opens the space for information manipulation. These manipulations are rarely detectable.

5. The Covid-19 virus epidemic caused many inconveniences, worries and restrictions. During this period, remote working, teleworking and doing things without being present at the place became a lot frequent. These conditions meant that activities were accompanied by creativity and technology, and new solutions were presented. These conditions have shown that many processes and activities can be done without going to the place in question and with the least amount of time and money. It is also possible that similar situations will arise in the future. Therefore, we must be prepared for such conditions in order to avoid another crisis.

It seems that the best way to reduce or eliminate the risks and problems mentioned is to automate the usual accounting and auditing processes. In addition, the automatic implementation of administrative bureaucracy is caused by economic activities. This automation should take place without human intervention and on a secure and reliable platform of new technologies. This platform should be able to identify, measure, collect, register, classify, summarize, store, process, report and validate the events and activities of economic entities. In addition, these actions should be carried out in accordance with laws, standards and accepted accounting and auditing principles, and reports should be made available online to stakeholders in real time.

Essentially, automated accounting and auditing is a process in which a set of routine, stable, repeatable and structured actions are performed thanks to the capabilities of machine learning and new technologies. Machine learning enables accounting professionals to perform accounting and auditing processes through software, and new technologies enable processes to be performed with minimal dependence on manual inputs and human intervention. Therefore, automatic accounting and auditing is the use of technology to perform traditional accounting and auditing operations and techniques online without human intervention. In other words, automated accounting and auditing is an automated and online process of identifying, measuring, collecting, recording, classifying, summarizing, analyzing, reporting and validating economic events and activities through technology and according to accepted standards. Accounting and auditing, related laws and regulations are carried out, and it is in line with helping the decision-making of stakeholders and social interests.

Automated accounting and auditing processes free the profession from tedious, erosive, voluminous and error-prone tasks; from recording complex business transactions; from tracking transactions and documentation, from stressful and voluminous reporting and from many other problems. It also improves the speed, accuracy and reliability of the reconciliation process by automated routine processes and high-volume transactions. The existence of standard frameworks and templates along with customizable and compliant validation provides the best approach for low-risk automated.

By automating repetitive, simple tasks, accountants could now be freer to confront more complex issues. For example, data gathering could come to be automated, and then accountants will simply focus on the interpretation and implementation of the data (Erickson, 2017). When accountants are no longer required to make the manual entries, they can instead redirect focus on analyzing the financial statements and financial issues that require accounting expertise to resolve. Such analyses will increase the quality of the financial statements which also means an increased reliability (Lupasc, Lupasc, & Zamfir, 2012). If everything works correctly and the concepts are designed in accordance with international accounting standards, accounting errors would be reduced because there will be no human intervention in the process and therefore the financial statements would be more reliable and credible than they are now (Uwadiae, 2015). Activities such as bank reconciliation, accounts payable and expense management will also come be automated in line with accounting web. Other accounting tasks that can easily to be taken over by computers include: Auditing expense submissions, clearing invoice payments clearing, assessing risk, calculating analytics, categorizing invoices and more (Erickson, 2017). Audit planning, analytical review procedures, materiality assessment, internal control assessment, risk assessment and going concern decisions (Gulin, Hladika, & Valenta, 2019). Moudud-Ul-Huq (2014) highlighted the fact that digitalization and automation are helpful for the auditors in the following processes: audit planning, analytical review procedures, materiality assessment, internal control evaluation, risk assessment and going-concern decisions. There are a few researches that analyze how many companies use digital solutions today and what they expect to use in the next few years. These studies are mainly initiated and conducted by the largest audit firms.

As accounting processes become more automated and less time consuming, accountants are becoming more connected to their clients and are increasing their advisory services when it comes to day-to-day business operations. In their study, Herbert, Dhayalan, and Scott (2016) examined that digitalization and automation are being used in order to eliminate or minimize routine and repetitive tasks, allowing employees (accountants) to focus on more creative, non-routine and unstructured tasks that require more thinking and additional skills. This change in approach will affect the future activities of experienced accountants (Gulin et al., 2019). Guthrie and Parker (2016) emphasize that accountants will experience extensive challenges with automated processes, which will complete tasks faster than they can. According to Forbes (2018), automation presents an opportunity for accountants to evolve into value-added business consultants and analysts. Accountants can then focus on performing more value-added, analytical and strategic tasks, which in turn could increase their job satisfaction. Automation is expected to enable accountants to enhance the competencies of robots through their knowledge. However, accountants need to develop their skills in order to adapt to the changes brought about by automation. Arntz, Gregory, and Zierahn (2017) state that many accounting tasks are already automated in companies, such as invoicing, payroll and bookkeeping, which involve the processing of large amounts of data and consist of repetitive, stable and structured tasks. In general, the process of accounting information has already become largely automated (Arntz et al., 2017). Therefore, the accounting and auditing profession from the beginning is important for the development and growth of the country. The automation of accounting processes and the change in the requirements of the profession will lead to the disappearance of the professional, who today is seen only as complying with legal requirements. There will be an opportunity for the profession and professionals to excel in other areas of their knowledge, such as consulting and business strategy, using the vast knowledge acquired in education for training (Sumar, 2021).

According to Taipaleenmaki and Ikaheimo (2013), the adoption of automation in accounting processes may reduce the demand for accounting skills. Instead, employees should supplement their technological skills to understand the automation process. It is further stated that in the future, accounting firms will be replaced by other professions as their training is no longer needed. Therefore, if the automated development can perform accounting without human involvement, firms may lose their clients since the expertise is no longer needed (Taipaleenmaki & Ikaheimo, 2013). According to the Swedish Research Council ^[1] (2014), among the professions most likely to be replaced within 20 years, accounting assistants rank second. Furthermore, one researcher believes that the labor market will change due to automated processes (Fölster, 2014).

Benedikt Frey and Osborne (2013) conducted a study University of Oxford. They concluded that there is a 99% chance that the jobs of tax return and information preparers will be automated. For financial professionals, accountants and auditors, there is a 98% chance that this will happen. The statistics and figures from this survey gave the highest impact score among 702 job titles for the accounting and auditing profession. The Irish technology services company Accenture published a report in 2015. In its report, Accenture predicts digital death by 2020, with 40% of accounting tasks and transactions being automated. Zadorozhnyi, Muravskyi, Pochynok, and Hrytsyshyn (2020) also addressed the issue of accounting automated in their article “Innovation Management and Automated Accounting in the Chaotic Storage Logistics”. In their review, Kuaiber, Ali, Al-Yasiri, Kareem, and Almagtome (2024) emphasized the development of automation in the accounting system, and the fundamental transformation in the future of financial reporting in integration with artificial intelligence. The ICAEW ^[2], in its report introduces artificial intelligence, big data, blockchain and cybersecurity as technologies that will revolutionize accounting and auditing. On the other hand, Malaysian Accounting Higher Education Institutions (2018) ^[3] in its report informs about the need to include accounting accuracy programs in the areas of artificial intelligence, blockchain, cloud intelligence, cyber security, analytics and data science. The Forbes report (2018) ^[4] also considers the use of cloud power, the acceleration of automation and the advancement of blockchain as future trends in accounting. Botea (2018) ^[5] believes that 97% of accounting consists of activities that can be digitized. McKinsey Global Institute’s (2018) ^[6] report states in its report that 42% of financial activities can be fully automated, and another 19% can be automated. Atabayeva and Abubakir (2023) have considered the simplification of financial management as a result of process automation and the integration of information technologies, and have considered it an evolution of accounting, citing the benefits of automated accounting.

A substantial body of research has emerged to support the notion that accounting and auditing processes are undergoing a transformation towards automated systems, driven by the integration of technological advancements. It is imperative that Cloud, Internet of Things, Big Data, Artificial Intelligence and blockchain are integrated as the most effective technologies in the accounting and auditing process, or vice versa. When these concepts are implemented in different dimensions, they enable computers to read, retrieve, analyse and transmit relevant and timely data for the accounting and auditing process. The subsequent reception, recording, cleansing, classification, transfer, processing, reporting and distribution of this data to stakeholders is then governed by standard algorithms and rules and regulations. The results and findings of events and activities are discussed in many topics of documentation, deep calculations, financial reporting, risk analysis, proof of management claims, internal control, validation, assurance and many other functions are performed intelligently and automatically.

The future of research and systems thinking in new technologies is of great importance for the strategic planning and strengthening of future areas of focus. The capabilities, power and high growth rate of technologies have enabled profound technical, economic and social developments over recent years. These developments have given rise to a phenomenon that may be termed “digital neo-Darwinism.” Neo-Darwinism is the modern evolutionary synthesis, representing a significant development based on Charles Darwin’s original theory of evolution. In this discussion, the term is employed to denote a contemporary progression and evolution in the field of technologies. Meanwhile, blockchain technology represents one of the most significant innovations to emerge from social demand. Blockchain technology represents a natural response to several global factors and needs that have given rise to a new social concept, influencing the way people live, interact and communicate, as well as business processes. The pinnacle of this phenomenon’s manifestation and penetration in the domains of accounting and auditing can be regarded as a platform that automates accounting and auditing processes. This vital issue is driving fundamental change and progress in information, credit and reporting systems (Noori Doabi, Rahnamay Roodposhti, Kordlouie, Nikoomaram, & Talebnia, 2025).

The scientific and theoretical framework of this issue has been examined and developed by the authors in another study. The framework developed in this study is based on an analysis of society’s norms, expectations and demands, as well as an assessment of the characteristics and performance of blockchain technology. It encompasses numerous technical, cultural, social, economic, political and contextual factors from a mixed perspective and with a systemic approach. The results of the literature analysis and the research findings, indicate that automated accounting and auditing, in conjunction with blockchain technology, represent the primary network and vital veins of the phenomenon of domestication. These elements encompass a multitude of scientific, practical and philosophical dimensions pertaining to events and activities (Noori Doabi et al., 2025). This framework is a set of processes, tools, emotions, feelings, beliefs, attitudes, motivations, conditions, value, importance, necessity, dependency, preferences, individual factors, social factors, economic factors, political factors, contextual factors and it includes professional factors related to the areas of finance, accounting, auditing and technology. These factors are the result of an analysis of 38 well-known theories and models on the subject, including Evolution Theory (ET), Agency Theory (AT), Stakeholder Theory (ST), Institutional Theory (InT) and Deinstitutionalization Theory (DInT), Path Dependency Theory (PDT), Theory of Professions (TP), Job Polarization Theory (JPT), Information Theory (InfoT) and Information Processing Theory (InfoPT), Network Theory (NT) and Actor-Network Theory (ANT), Transaction Cost Analysis Theory (TCA)/Transaction Cost Theory, Innovation Diffusion Theory (IDT) and Perceived Characteristics of Innovating Theory (PCIT), Contingency Theory (CT), Game Theory (GT), Theory of Reasoned Action (TRA) or Reasoned Action Theory (RAT), Theory of Planned Behavior (TPB) and Decomposed Theory of Planned Behavior (DTPB), Theory of Interpersonal Behavior (TIB), The Integrated Behavioral Model (IBM), Affect, Behavior and Cognition Model (ABC), Motivational Model (MM) and Igbaria’s Model (IM), Social Cognitive Theory (SCT), Technology Acceptance Model (TAM) (TAM) (TAM) (ETAM), Unified Theory of Acceptance and Use of Technology (UTAUT) (UTAUT) (CUTAUT), Technology Readiness Acceptance Model (TRAM), Task-Technology Fit (TTF), Model of Acceptance with Peer Support (MAPS), Initial Trust Model (ITM).

The fundamental factor that drives the growth and expansion of any profession, including accounting and auditing, is a commitment to a code of professional ethics. Consequently, this issue has also been studied from an ethical point of view (Noori Doabi, Rahnamay Roodposhti, Kordlouie, & Nikoomaram, 2024). In this regard, it can be said: Decentralization, distributed databases, distributed ledgers, peer-to-peer communication and synchronous networks are the main features of the blockchain platform, in line with the automation of accounting and auditing. These features eliminate or remove ambiguity, doubt, conservatism, secrecy, information asymmetry, lack of conflict of interest and allow access to stakeholders. Therefore, it causes transparency, justice, fairness and equality based on ethical and human principles in all fields of knowledge, including accounting and auditing. Elimination of intermediaries, authentication of persons, direct detection of transactions, immediate registration of events, logic and strong computing algorithms, objectivity, network integrity, irreversibility of transactions, immutability of documents, verifiability, traceability and completeness of information are also other features of blockchain. These features ensure compliance with the ethical principles of integrity, honesty, impartiality, independence, competence, professional diligence, professional conduct and reduction of moral risks. Therefore, it creates trust and security. Blockchain cloud storage, cybersecurity, information security, privacy with differential access, system integrity, non-repudiation, ownership verification, smart contracts, cryptography, tamper resistance, distributed information, consensus mechanisms and control stabilization are other features of the platform. It is blockchain. These features lead to compliance with the principles of diligence and confidentiality, which ensure the safety of the beneficiaries. It is possible to combine the capabilities of artificial intelligence, Internet of Things, big data and cloud processing with blockchain features. By doing so, we will have strong logical algorithms and calculations with the highest possible accuracy and quality in collecting, processing, recording and reporting information and operational throughput. Therefore, accountants and auditors are required to acquire knowledge and improve their professional skills with regard to digital transformation. On the other hand, professional principles require that these professions constantly update themselves with the knowledge, changes and developments of the business world in order to realize the main goal of accounting and auditing, which is to help stakeholders make decisions. In doing so, they eliminate their shortcomings and increase their operational and analytical power to fulfill their responsibilities. This edition expresses the ethical principles of competence, diligence, principles and professional rules in accounting (Noori Doabi et al., 2024).

The purpose of this research is to increase knowledge and predict the future of accounting and auditing. The central research question guiding this study is whether accounting and auditing can be automated within the context of blockchain technology. Therefore, this research is based on a targeted hypothesis that accounting and auditing can be automated in the context of blockchain technology. For this purpose, the topology of blockchain technology was studied using the library method. The content analysis and coding of theoretical foundations and collected sources was done in ATLAS.ti v9. Based on the coding, the influential components of the research topic were identified. The specified components and variables were in the form of a four-variable model (Human Factors; Political Factors; Professional Factors; Background Factors) and a nine-variable model (Perceived Usefulness & Ease; Knowledge and Understanding; Experience, Feeling and Sensitivity (EFS); Attitude, Belief and Behavior (ABB); Political, Environmental and Contextual Aspects (PECA); Process Evaluation (PE)), and a questionnaire was designed based on them. An online and semi-structured questionnaire was prepared.

There is an international aspect to this research. A total of 280 internationally recognized and introduced experts in the fields of accounting, auditing, finance and information technology were invited to provide their opinions. The participants were selected through purposive and snowball sampling. Responses that were incomplete or lacked complete submission were discarded. The final analysis incorporated the responses of 35 respondents who completed the questionnaire in its entirety. The demographic composition of the study sample was as follows: 60% of the participants identified as male and 40% as female. A further noteworthy finding was that 94% of the participants held a PhD, thus indicating a high level of expertise in their respective fields. They were from Iran, Italy, Malaysia, America, India and Indonesia. This research was conducted based on the FTA approach and in 2023. The FTA approach is a combination of technology forecasting, technology assessment and technology foresight. The main goal of this approach is to predict the future of technology through the detailed description, evaluation and analysis of the current situation and the identification of strategic development factors and its functional capabilities in the future.

The survey was analyzed using the Fuzzy Delphi method, and in order to confirm or reject the hypothesis and the accuracy of the research results, linear regression and Automatic Linear Modeling (ALM) methods were used. In addition, in order to confirm the correctness, accuracy, determination of the factors and the final model, more advanced and updated methods in the field of machine learning and deep learning were used. Then, the data were analyzed using the Support Vector Machine (SVM) method, which is a subset of artificial intelligence methods and a supervised learning and classification method. Finally, the Structural Analysis Method (SEM) was used as a multiple factor analysis method using ATLAS.ti, Excel, SPSS, Python and SmartPLS software.

In order to evaluate the validity of the questionnaire, 280 experts and experts of the subject (the target community) were invited and presented the questionnaire, and the opinions of 35 participants (the studied community) were evaluated. In addition, the reliability, certainty and the level of alignment of the research questions were evaluated using Cronbach’s alpha test, which is the most common and popular criterion for evaluating similarity, internal consistency and reliability in research. The result of Cronbach’s alpha coefficient of the explanatory questionnaire of this research in SPSS v.27 software is shown in Table 1.

The above test, considering all 35 respondents to 104 questions, shows that the Cronbach’s alpha coefficient is 0.985. This result indicates the exceptional quality of the questionnaire and underlines its high reliability and trustworthiness. In addition, in order to evaluate the validity of the structure, the average variance criterion was extracted from the main variables of the research using the Fornell and Larcker criteria. The result of the AVE calculation expressed in the following formula is more than 0.8; therefore, the convergent validity of the questionnaire was accepted.

Equation (1): Validity assessment of the convergence of the variables derived from the questionnaire questions from the average variance extracted (by authors)

The Fuzzy Delphi method is a survey technique grounded in the insights of experts in the domain of futures thinking. This method combines the Delphi method and fuzzy set theory. This technique is a systematic method for collecting, contextualizing, verifying and screening indicators, organizing ideas and analyzing experts’ opinions about a specific question or topic. Consequently, the Fuzzy Delphi method has been employed in this research study. Consequently, in this particular section of the research, the fuzzy Delphi method was employed to screen consensus and unanimity factors on the research topic, utilizing the results of a questionnaire administered to experts. In the first step, after identifying the effective and affected factors and components known in the research literature, a questionnaire was prepared. In the second step, the questionnaire was embedded electronically in a dedicated space on the website www.payam-noori.ir. In the third stage, primary experts were identified through a targeted sampling and invited to participate in the survey. As the experts participated in the survey, snowball sampling was also used to identify additional experts. In the fourth step, the responses of the participants were collected and converted into Excel software using a Likert scale and triangular fuzzy numbers. The Likert scale and triangular fuzzy numbers used are shown in Table 2.

Triangular fuzzy numbers were given according to the opinion of each expert, and a set of triangular fuzzy numbers was obtained for each expert. Then, after determining the levels of the fuzzy scale direction, the average of the sets $(A~(i))$ of all the sets $(A~(i))$ was calculated, and for each expert, the amount of difference from the average was calculated. In the fifth step, de-fuzzification was done with the center of gravity method. The formula for these actions is given further in the text.

Equation (2): Determining the criteria and calculating the amount of consensus in the fuzzy Delphi method (by authors)

The results of the survey at the threshold of 0.5 phased in the Delphi method based on the opinions of the experts in the statistical community are shown in Table 12 (Appendix 1). The results of the average fuzzy weight of factors that are more than 0.05% have been approved and accepted.

The results of the fuzzy Delphi method demonstrate that 93 out of 104 items were accepted, with the exception of eleven questions (1, 15, 17, 19, 21, 23, 29, 31, 37, 38 and 104). The remaining questions were approved by consensus of the experts. Of course, the rejection of the experts’ opinion regarding these 11 questions does not mean that the question and the component are ineffective, but in order to explain the more logical questions and to be precise in answering some questions with the logic of confirmation and reduction, which was also agreed by the experts, their topics were evaluated at an unfavorable level. The clarity and accuracy of the answers can be seen in Table 3.

The Kolmogorov–Smirnov test was used to determine the degree of conformity of the questionnaire data (or selected research components) with the normal distribution. The results of this study are presented in Table 4.

The results of this research, when analyzed using SPSS software, indicate that the significance level of all the data is less than 0.05. This finding suggests that the null hypothesis is not rejected, thereby indicating that the data distribution is not normal. This abnormality or lack of balance is attributable to the fact that each question in the questionnaire is explained based on an effective or affected component of the research objective and based on thematic orientations. Consequently, this abnormality is entirely logical. Secondly, given that the target community of this research is comprised of experts in the fields of accounting, auditing, finance and information technology, it can be posited that the opinions of these experts are based on the objectives of the research. It can thus be concluded that the data and information obtained from them are based on compatibility with the real world and in accordance with human logic. Consequently, it is imperative that their normalization is adapted to the methods used, rather than being based on the assumption that the data distribution is normal or not. Consequently, the distributional perspective of the research variables does not serve as a criterion for selecting the method of normality in such research. Consequently, a range of methodologies have been employed to examine and verify the results of this study.

The results of the collection of opinions from the participating experts in completing the 104 questions of the questionnaire were used to determine the pattern and verify the accuracy and correctness of the survey and consensus in the fuzzy Delphi method. This was based on the effective and affected components derived from the theoretical foundations of the research in the form of 4 main variables, that is factors technical (TFv), human factors (HFv), political factors (PFv) and contextual factors (BFv) as well as at a more refined level, in the form of 9 sub-variables, that is perception of usefulness and ease (PUE); knowledge and cognition (KU); EFS; ABB; Dependence, Attachment and Preference (DAP); PECA; Professional Principles and Expectations (PPEA); PE and the future forecast (FF) was classified and summarized.

In order to prepare, homogenize and ensure consistent management of variables and to consider all subgroups with respect to the independent variables, as well as to review and validate the research method from the (ALM) platform, the results of the data distribution were analyzed.

The results of the research objective and the determination of the behavior of the dependent variables (as the analysis weight) according to the interaction of the independent variables in all components and states in the ALM method in SPSS software are presented in Table 5.

As demonstrated in Table 5, the collective opinion of all 35 participants has been considered as 100% in the course of this analysis. The objective of this review was to assess the feasibility of automated accounting and auditing without relying on automated preparation performance status, while accounting for all potential predictors. The value of −231.316, as a measure of the comparative information of the nine-variable model, and −236.300, as a measure of the comparative information of the four-variable model, indicate the superiority and suitability of this research. This notion is further substantiated by the chart depicting the accuracy of checking and forecasting. The chart is displayed in Figure 1.

As demonstrated in the graph, the accuracy of this study is estimated to be 99.8% in the right model (nine variables) and 99.7% in the left model (four variables). This finding indicates that the model exhibits an accuracy level of over 99%, which is reflected in an equivalent R-squared value. This outcome is indicative of the effectiveness of the predictor variables in this research, which effectively predict over 99% of the variance in the performance of the dependent variables. The subsequent Figure 2 illustrates the degree of importance and influence of each variable.

As illustrated in the Figure 2, the nine-variable model (left) reveals that the PE variable has a 45% impact, the PUE has a 24% impact, the EFS has a 12% impact, the PPEA has a 9% impact, the FF has an 8% impact, the DAP has a 1% impact and finally, the ABB has a 0.5% impact. In the four-variable model (right), the TF variable is of the greatest importance and predictive impact, followed by the PF, HF and BF variables. This ranking is in comparison to the other variables, with the TF variable having the highest importance and predictive impact, and the BF variable having the lowest. This can be seen in Figure 3.

As demonstrated in Figure 3, the figure illustrates the influence of each predictor variable on the target variable, ordered from the most to the least significant (in the nine-variable model: PE, PUE, EFS, PPEA, FF, DAP, ABB, KU and PECA). The aforementioned variables (in the four-variable model: TF, PF, HF and BF) are represented in the form of thickness and width of connection lines. Further details can be found in Table 6.

As evidenced by the results of Table 6, at the 0.01 significance level, the variables PE, PUE, EFS, PPEA, FF and DAP, which comprise a model of nine variables, are statistically significant. The confidence level of over 99% confirms the relationship and impact of these variables. In contrast, the variables ABB, KU and PRCA are not significant, as the confidence level is greater than 0.05. In the four-variable model, the TF, PF and HF variables were reported as significant with more than 99% confidence, while the BF variables were reported as significant with more than 95% confidence.

The coefficients resulting from the ALM method indicate the intensity and type of relationship between the independent and dependent variables. Furthermore, they demonstrate that for each unit of change in the independent variable, there will be a corresponding change in the dependent variable, as indicated by the coefficient of each variable in the table. The research equation for both variable groups (4 and 9) can be seen in Equation (3).

Equation (3): Research equation in ALM method (by authors)

As illustrated by the aforementioned equation, the majority of the intensity of the direct and positive relationship in the dependent variable can be attributed to the independent variables PE, PUE, EFS, PPEA, FF, DAP, ABB and KU. Conversely, the inverse and negative relationship in the independent variable PRCA (sub-variables) is of lesser significance. In the model of the main variables, the most significant correlation of the dependent variable is observed in the independent variables TF, PF, HF and BF, which all demonstrate a direct and positive relationship. The results of the table of importance and explanatory power of each of the independent variables in the coverage of the dependent variable model are also in exact order.

In order to more accurately evaluate the predicted value of the dependent variable for a given value of the independent variable and to consider all relationships and subsets, this study used the linear regression method in SPSS software. The results of this analysis are presented in Tables 7 and 8.

The regression analysis presented in Table 7 demonstrated a 99.9% linear correlation between the dependent variable and the predictor variables in both models. This indicates that the models can explain over 99% of the variation in the dependent variable, demonstrating a good fit. Furthermore, the equality of the R-squared and adjusted R-squared values indicates that the variables used in the model have been appropriately selected and provide a satisfactory fit.

The results of the analysis of variance, presented in Table 8, demonstrate that the regression models employed are both appropriate and desirable, as indicated by the F value, which indicates the total dispersion. The F and Sig values, less than 1%, confirm the significance of both models with 99% confidence, meaning that they effectively describe the dependent and independent variables.

The results of the t-test of the model indicate that the null hypothesis, which asserts the absence of an influence or relationship between the independent variables and the dependent variable, is rejected. The standardized coefficients in beta demonstrate the role, importance and explanation of the dependent variable by each of the variables. Furthermore, in accordance with the significance level, with the exception of the PECA and KU variables, which exceed the 0.05% threshold, the null hypothesis is rejected for the remaining variables, indicating that they exert no influence or relationship with the dependent variable.

In order to reach a final decision, SVMs were employed, which are a sub-branch of artificial intelligence and a supervised learning and classification method. The employment of SVMs was utilized to ascertain the capacity of a machine learning classifier to accurately discriminate the outcome, thereby providing a more rigorous and additional verification of the reliability of the results. To this end, the dependent variable predictor data were normalized with Z-Score and implemented in the supervised SVMs algorithm. The results of this method, in consideration of the accuracy, quality and size of the research data set, reflect the performance evaluation of the investigated model in the classification of two binary classes. The results of this survey are presented in Table 9 and Figure 4.

As illustrated in the complex matrix, the actual predictor variables exhibit 19 positive values and 13 negative values, two false positive values and one false negative value in the explanation of the dependent variable. It can therefore be stated with 91% accuracy and certainty that the model in question, along with the parameters considered (in the form of questionnaire questions, components and variables), have been accurate, appropriate and effective in order to make a correct decision and reach the final goal of the research.

The SEM was employed in Smartpls v3.3 software to examine the causal relationships between research variables. This method enables the integration of factor analysis and multiple regression analysis, as well as the simultaneous testing of a set of regression equations using partial least squares. Figure 5 illustrates the questions, components, variables and research factors of the artificial neural network. The findings of the investigation and analysis of the nine-variable sub-variable model of the research, conducted using the SEM, are presented further in the text.

As has been demonstrated, the model of this research has been able to cover 0.997 goals and explain the factors. In addition, the factor loadings based on the items considered by experts and the effect coefficients of each variable have been subjected to rigorous analysis. Figure 6 illustrates the significance level of each variable in structural equation analysis.

As illustrated in Figure 6, the level of significance for all variables in this study is 0.000, thereby confirming the significance of the model. The structural equation analysis coefficients are presented in Table 10 for reference.

The effect size index indicates that the research variables exert a notable influence on the dependent variable. However, it is possible that the DAP variable may be influenced by another unidentified variable, potentially enhancing the effectiveness of the analysis. Consequently, all variables have been identified as significant with a confidence level exceeding 99%. The results of the study are presented in Table 11.

The R-squared value for this study is 0.997, indicating that the predictor variables have effectively explained the research objectives and established a suitable criterion with high accuracy. The T-value for the DAP and ABB variables is less than 1.96, indicating that the relationship and influence of these two independent variables on the dependent variable are not statistically significant. This indicates that the variable of dependence, attachment and preference (DAP) is not statistically significant when factors such as institutional acceptance, corporate reputation and banking and insurance preferences are taken into account. ABB variable was found to be statistically insignificant when factors such as individual characteristics (e.g., age, gender, emotion and habit), mental norms and complexity were taken into account. PECA variable was not found to be significant due to factors such as professional conditions, availability, public beliefs and awareness. The impact of these factors on the research objective or the dependent variable is deemed to be minimal. However, a more comprehensive analysis of these variables suggests that they either lack a significant impact or exert a negative and diminishing effect on the research’s intended outcomes.

This study has been prompted by the impact of contemporary technological developments and advancements on businesses. The results of the research literature analysis demonstrate that the application of automated accounting and auditing in the context of blockchain technology encompasses a comprehensive array of processes, tools, emotions, feelings, beliefs, attitudes, motivations, conditions, values, importance, necessity, dependence, preference, individual, social, economic, political, contextual factors and professional principles in the domains of finance, accounting and auditing. These factors pertain to both the past and the present, with a focus on the future implications of blockchain technology in these fields. Accordingly, to gain a comprehensive, precise and accurate understanding of this matter, we also solicited the input of experts in this field. The findings of the investigation into the research hypothesis (i.e., that accounting and auditing will be automated on the blockchain platform) from the perspective of experts indicate that automation represents a transformation in the field of accounting and auditing.

The findings of this study illustrate that the attributes and functionalities of the blockchain platform will facilitate the automation of accounting and auditing processes for several reasons and will be swiftly accepted and embraced by society. A rationale for this assertion can be found in the following reasons: The capacity to respond to the needs and demands of stakeholders; comprehensive coverage of all scientific and practical processes of accounting and auditing; increased transparency; increased accuracy; increased trust; increased satisfaction; increased added value; increased competitive advantage; increased operational improvement; increased justice and social welfare; information symmetry; increased efficiency and effectiveness; increased accountability; increased responsibility. The economic efficiency of the blockchain platform is evident in its ability to comply with legal and regulatory frameworks, reduce adverse environmental impacts, downsize government institutions, prevent corruption and fraud, reduce job burnout, create motivation and self-confidence, facilitate timely reporting, enhance accessibility, accelerate processes, reduce risk, reduce tax evasion, reduce control, prevent information rent, enhance monitoring capability, extend durability, provide stability, enable self-control and more.

In addition, the findings of this study elucidated the efficacy of each element in the process of adopting and integrating automated accounting and auditing procedures on the blockchain platform. In light of these findings, it becomes evident that factors such as the level of knowledge and awareness of individuals, the ease and comfort of working with the system, executive support and the feeling of guarantee have a significant impact on the system in question. Factors such as experience, skill, habits and risk-taking of people, advertising of the system and the amount of authority to use this system were found to exert a moderate influence. The age of people was found to have a negligible effect. Gender was found to have no effect on the process of accepting and implementing automatic accounting and auditing on the blockchain platform. As anticipated, it was found that with automatic accounting and auditing, the academic field and job of accounting and auditing will not be eliminated but will become more specialized. This assertion is corroborated by the findings of Törnqvist and Forss (2018), Simon (2018), Doung and Fledsberg (2019), Gulin et al. (2019), Jedlickova (2020), Toťová (2020), Gustafsson and Jerkinger (2021), Rauramo (2021) and Coman et al. (2022). In this regard, Leocádio, Malheiro, and Reis (2025) claim that be asserted that auditors find themselves at a crucial crossroads, where the continuous evolution of competencies is inevitably interconnected with the technological revolution. It is acknowledged that Rkein, Issa, Awada, and Hejase (2020) posit the view that a subset of accounting roles will become obsolete, with new roles emerging to take their place. However, this assertion does not imply the complete destruction of the field or it is contrary to the findings of this research.

The results of the analysis of four general effective factors in the research from the perspective of experts indicate that technical factors exert the greatest influence and importance with respect to accounting and automatic auditing on the blockchain platform. Subsequently, the political factors, human factors and background factors are presented. At the lower level, the examination of nine variables revealed that the PE variable, the PUE variable, the EFS variable, the Professional Principles and Expected Aspects variable (PPEA), the Forecasting Future variable (FF) and the Knowledge and Understanding variable (UK) exert the greatest influence and importance with respect to automatic accounting and auditing on the blockchain platform. The variables of DAP of individuals, institutions and organizations and ABB were found to exert the least influence and importance, respectively. The variable of PECA may potentially exert negative effects on the automatic accounting and auditing on the blockchain platform, given the prevailing pressures, conditions and platforms. It should be noted, however, that the two variables under consideration, namely PE and PUE, account for over 84% of the observed importance and effect of automatic accounting and auditing on the blockchain platform. The incorporation of the EFS and PPEA variables would result in the achievement of the research objective, exceeding 93% of the initial goal.

To demonstrate the veracity and precision of this research, the findings were subjected to analysis using both conventional and advanced techniques of deep data analysis in supervised and unsupervised learning. The results of the validity, accuracy and proof of the analysis of effective factors in this research were investigated using both common methods and advanced methods of deep data analysis in supervised and unsupervised learning. The approach, method, model and parameters presented in this study were found to be accurate, suitable and effective for making correct decisions and achieving the research goal with a certainty of more than 91%. A more detailed examination of the issue reveals that the degree of certainty is somewhat higher with different methods. Specifically, the automatic linear modelling (ALM) method exhibited a certainty of 99.5%, while the linear regression method demonstrated a certainty of 99%. The SVMs method corroborates the veracity, precision and efficacy of the research with a certainty of more than 91%. The SEM demonstrates a certainty of more than 99%.

In general, numerous studies have investigated the impact of blockchain on accounting and auditing. However, the majority of these studies have examined the topic of blockchain and its effects in a general or case-by-case manner. As no comparable study has previously been conducted, it is not possible to make a general comparison. However, at a more detailed level, Burhani (2021), Gustafsson and Jerkinger (2021), Van Horn (2021), Han, Shiwakoti, Jarvis, Mordi, and Botchie (2023) and Anis (2023) confirm that blockchain has led to improvements in the state and performance of accounting, auditing and financial reporting. Wanja’s (2021) study of the impact of technological innovations and computerised auditing on the performance of Kenya’s Big 4 accounting firms confirms the shift towards automated accounting and auditing, and its beneficial effects.

The objective of this research was to examine the impact of blockchain technology on the accounting and auditing professions on a global scale. The preliminary studies indicated that the prevailing trends and the intrinsic characteristics of this technology can facilitate the development of an automated platform for accounting and auditing processes. The issue of automated accounting and auditing is raised for five principal reasons. Firstly, the inherent perfectionist and convenience-seeking nature of humans and the natural process of neo-Darwinism. Second, dissatisfaction with the inability of accounting and auditing to resolve long-standing issues such as financial scandals, fraud, bankruptcy and market failures has contributed to this transformation. Third, it is due to the needs and demands of accountants, auditors, companies and governments, including the amount of work, complexity of issues, lack of time, lack of timely reports, competitive conditions, global market, multiplicity of laws and standards. Fourth, the rapid pace of technological advancement is a contributing factor. Fifth, the repetitive nature of numerous accounting and auditing processes lends itself well to automate. Therefore, the accounting and auditing professions are particularly suited to automate.

Among the plethora of technologies that have the potential to transform and evolve the fields of accounting and auditing, blockchain represents a natural and logical solution to the aforementioned issue. The transformation of blockchain is contingent upon the fulfillment of social demands and the satisfaction of those demands. This issue is readily apparent in the context of blockchain topology. Blockchain technology represents a novel distributed infrastructure, founded upon the capabilities of recording, distribution, encryption, consensus and contemporary intelligence, which collectively facilitate the management of a chain of data and information. Blockchain is an organized database comprising multiple layers, including a data layer, network layer, consensus layer, contract layer, service layer and application layer. This technology has the potential to leverage and benefit from other emerging technologies, such as cloud computing, the Internet of Things, artificial intelligence, big data and more. It has the capacity to radically transform traditional information flow, accounting information systems and audit processes.

The philosophical approach (to understand what, why and how) and systems thinking (to comprehensively analyze all relevant areas and factors) in phenomenology and futurology show that blockchain is a platform with rich capabilities and a distributed, immediate and reliable database for transformation. This transformation creates an ecosystem based on the demands and needs of societies. Moreover, an understanding of the fundamental truths and purposes of accounting and auditing, coupled with a keen awareness of the prevailing trends, changes and their respective impact areas, means a convergence of accounting and auditing with technology, thereby driving its evolution and innovation.

The blockchain technology platform is capable of identifying, collecting, measuring, transferring, recording, analyzing, summarizing and reporting all data from financial and non-financial events in real time, online, continuously and automatically. Consequently, the blockchain technology platform is capable of automating all processes and cycles of accounting operations. In addition, the blockchain platform elucidates the theoretical tenets of financial reporting. Blockchain systems enhance the accuracy, precision, transparency, relevance, timeliness, reliability, comparability and trustworthiness of information. A multitude of audit processes, including proof of occurrence, proof of existence, proof of ownership, proof of the correctness of mathematical calculations, proof of value, proof of appropriate disclosure, proof of completeness, proof of transactions with related parties, proof of compliance with money laundering laws and proof of internal control compliance, are conducted automatically and continuously at the time of the event. Furthermore, it mitigates potential risks and moral hazards while fulfilling the necessary audit requirements. In terms of internal control, the necessity for information audit control requirements is reduced, while ensuring the safety and integrity of assets, eliminating the dependency on relevant inspection work, reducing the demand for essential independent audit work and thus reducing the costs of the company. The function of the chain and time stamp in the blockchain itself serves to deter, prevent and combat fraud and the misuse of financial institutions’ data. Conversely, blockchain smart contracts that are designed based on algorithms based on approved laws and regulations will not allow for violations or deviations from the terms of the contract. Consequently, in numerous instances, there will be no necessity for supervision. Furthermore, the implementation of guidelines, regulations, laws and standards on the blockchain via an algorithmic approach, with the assistance of artificial intelligence, facilitates the accurate, precise, comprehensive, and algorithm-compliant identification, registration, classification, analysis and summarization of collected events. The blockchain provides rules and standards automatically and in real time. It can accurately and completely cover the theoretical framework of financial reporting, including assumptions, principles and covenants; the professional code of conduct; the qualitative characteristics of financial reporting and the executive processes of accounting, auditing and financial reporting. Consequently, an audit conducted on a blockchain platform can be automated. The implementation of this automated does not signify the complete eradication or obsolescence of the accounting and auditing profession. Rather, it merely transitions from one form to another in accordance with the law of energy conservation.

On the other hand, the accounting and auditing professions are also highly susceptible to automation and demonstrate a willingness to accept it. Nevertheless, certain industries, institutions and monopolistic organizations, as well as traditionalist and scientifically uninformed individuals, have expressed reservations about this issue. The financial sector, including banking, insurance, credit and other financial intermediaries, is also grappling with the implications of this technological advancement. While some may view it as a potential opportunity, the findings of this survey indicate that many are concerned about the impact of automation on their businesses. This shift is poised to significantly disrupt the role of financial intermediaries, necessitating a fundamental transformation in their processes and activities to remain relevant. Adapting to automated processes and aligning their nature and structure with these changes is crucial for their survival.

In light of the findings presented in this research, it is recommended that accounting and auditing institutions and associations expeditiously adapt their procedures and standards to align with this development. In the realm of academia, it is imperative to ascertain the proficiency in emerging technologies at both the introductory and advanced levels through the incorporation of foundational and practical university curricula in the domains of accounting and auditing. Furthermore, in light of the imminent transformation of the roles of accountants and auditors, it is recommended that universities introduce new academic disciplines, including modern accounting and auditing, blockchain accounting, blockchain auditing, financial consulting and analysis, data analysis and cyber auditing. It is also recommended that working accountants and auditors enhance their awareness of new technologies and expand their knowledge in accordance with the advancements in the fields of accounting and auditing. Those engaged in routine tasks (e.g., storage, bookkeeping, cashiering, statement writing, purchase and sale accounting, internal control, etc.) that are susceptible to automation in the context of blockchain technology must possess the requisite knowledge and skills to remain competitive in this evolving profession. With the right qualifications and expertise, they can pursue positions in automatic accounting and auditing.

The findings of this research indicate that in subsequent studies, certain considerations and issues should be addressed and examined. This research was conducted at a time when automation had not yet been fully implemented and a portion of accounting and auditing work was performed digitally by software. Consequently, the impacts observed in this study are a combination of previously identified and speculative future impacts. The potential for further research is contingent on the automated of additional processes and the resulting observable impacts. The methods and approaches integrated in this research can serve as a foundation for future studies. Furthermore, the technical, ethical, social, political, legal, security, environmental, sustainability reporting and integrated reporting aspects of automated accounting and auditing represent a research agenda for future studies. A further imperative for future research is the examination of the evolving methodologies and requisites of the educational system and the curriculum of the accounting and auditing profession. From a technical standpoint, the lacunae resulting from an absence of both a knowledge base and technological expertise offer numerous opportunities for the undertaking of standardization and comparative, explanatory and prescriptive studies in the domain of accounting and auditing standards and procedures, business processes and legislation. It is evident that there is a necessity for technological research in the field of connecting institutional systems and the convergence and integration of artificial intelligence, Internet of Things, big data and cloud technologies in the blockchain platform and the development and approval of its protocols. Conversely, in light of the evolving nature of accounting and auditing in the context of this phenomenon, there is a compelling rationale for investigating the technical changes, principles and criteria that underpin the professional practices of these disciplines. Furthermore, given the considerable impact of the system in question on the reduction of costs, as well as the cost of goods and services, it is imperative to undertake a comprehensive study in this regard, with a view to examining its consequences.

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