Title: Fraud prevention and detection in a blockchain technology environment: challenges posed to forensic accountants
Authors: Musbaudeen Titilope Oladejo; Lisa Jack
Addresses: School of Accounting, Finance and Economics, Faculty of Management, University of Waikato, Hamilton, New Zealand ' Portsmouth Business School, University of Portsmouth, UK
Abstract: This paper set out to explore the challenges posed by blockchain to forensic accountants in the prevention and detection of fraud. Blockchain will create a decentralised environment where transactions and data have no third-party control. This technology is capable of disrupting accounting and audit because it is capable of automating financial records and audit processes. The fraud analysis in a digital environment is complex and the evolution of new technologies or innovations such as blockchain, artificial intelligence, and robotics have added to these challenges. The framework for analysis adopted is a qualitative study using the library research methodology. The findings portray that blockchain technology is not 100% flawless, impenetrable to malicious attacks and hacking. The results of the study found that technology will affect the core functions of accountants, but the overall effects on the roles of forensic accountants and auditors are still unknown.
Keywords: blockchain; fraud; fraud prevention and detection; data mining; forensic accounting skills; audit; digital age.
International Journal of Economics and Accounting, 2020 Vol.9 No.4, pp.315 - 335
Received: 20 Feb 2020
Accepted: 04 Jun 2020
Published online: 07 Oct 2020 *