Framework for Financial Auditing Process Through Blockchain Technology, using Identity Based Cryptography

Abstract

With the realizing need to control fraud in the private and the public sector, we observe the past trends of corporate frauds, in terms of money laundering, counterfeit, misrepresentation of financial records by deviating rules, this mostly attracts developing economies which has spread its attention in various branches of the nation thus providing the right opportunity for criminal minds to set at work. Our paper focuses to, an aspect of accounting and helping auditors to prevent corporate fraud at an early stage. Paper also critically analyzes the impacts and scope of blockchain technology for auditing with the strong literature review in the field of blockchain technology and its application in the audit process. We have proposed a framework which uses the blockchain based IBC (Identity based cryptography), for blockchain node creation which will be added to the blockchain network. Any financial transaction can be properly audit with the implementation of this framework, as blockchain technology provides a very secure platform for the transaction and at the very same time auditing can also be completed because entire system of blockchain is transparent.