Page 30 - Quick Insights Book 2022

Chap. 6 – Information Technology

profession to expand its scope to record more types of activity to achieve these objectives. Critical Blockchain elements
than before, and to drill down closer to the economic reality (e.g., cryptographic key management) should be
under pinning the transactions recorded. Chartered Accountants, designed to include sophisticated General Information
with unique blend of technical and business knowledge, should Technology Controls (GITCs) that provide ongoing
seize the opportunity to take a lead on how blockchain is protection for sensitive information, as well as processing
embedded and used in the future, and to help organisations controls over security, availability, processing integrity,
develop blockchain-led solutions and services. Further, they privacy and confidentiality.
can also advise organisations which are considering the option
to join blockchain with an overall view of cost and benefits Deliverable
involved. Chartered accountants should upskill and prepare for On an ongoing basis, a trusted and independent third
an important professional opportunity of audit of smart contract. party may be needed to provide assurance as to the
effectiveness of controls over a private Blockchain.
ROLES OF CHARTERED ACCOUNTANTS IN
BLOCKCHAIN ECOSYSTEM (c) Central Access Granting Administrator:

Following is list of potential new roles for Chartered Accountants Basics
in Blockchain landscape, which is illustrative only and not all-
inclusive: Permissioned Blockchain solutions may benefit from a
trusted, independent and unbiased third party to perform
(a) Audit of Smart Contacts: the functions of a central access-granting administrator.
This function could be responsible for verification of
Basics identity or a further vetting process to be completed
by a participant before they are granted access to a
Contracting parties may want to engage an assurance Blockchain. This central administrator could validate the
provider to verify that smart contracts are implemented enforcement and monitoring of Blockchain’s protocols.
with the correct business logic. Chartered Accountants If this function is performed by a user/node of the
could verify the interface between smart contracts and Blockchain, then an undue advantage could exist and
external data sources that trigger business events. trust among consortium members could be weakened.
Without an independent evaluation, users of Blockchain Since this role would be designed to create trust for the
technologies face the risk of unidentified errors or Blockchain as a whole, due care will be needed when
vulnerabilities. To take on this new role, Chartered establishing both its function and its legal responsibilities.
accountants may need a new skill set, including
understanding technical programming language and Deliverable
Blockchain functionality. In the context of a financial
statement audit, management will be responsible for As a trusted professional, Chartered accountant is
establishing controls to verify whether the smart-contract capable of carrying out this responsibility.
source code is consistent with the intended business
logic. (d) Arbitration Function:
Deliverables Basics
Chartered Accountant auditing an entity with smart Business arrangements can be complex and result in
contracts/Blockchain is likely to consider management’s disputes between even the most well-intentioned parties.
controls over the smart contract code. Companies may For a permissioned Blockchain, an arbitration function
choose to reuse smart contracts built by other entities might be needed in the future to settle disputes among
already active on a Blockchain. the consortium Blockchain participants. This function is
analogous to the executor of an estate, a role typically
(b) Service Auditor of Consortium Blockchain: filled by various qualified professionals, including
Chartered accountants.
Basics
Deliverable
Prior to launching a new application on an existing
Blockchain platform or leveraging/subscribing to an Participants on the Blockchain may require this type
existing Blockchain product, users of the system may of function to enforce contract terms where the spirit
desire independent assurance as to the stability and of the smart contract departs from a legal document,
robustness of its architecture. Instead of each participant contractual agreement or letter. These professional
performing their own due diligence, it may be more opportunity lies for members to realise.
efficient to assign this task to a Chartered Accountant

Quick Insights on Professional Opportunities for Chartered Accountants 17