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Ledger to ledger: off- and on-chain auditing of stablecoin

Rubens Moura de Carvalho et al.

The International Journal of Digital Accounting Research2022https://doi.org/10.4192/1577-8517-v22_5article
ABDC B
Weight
0.56

What the paper says

To assess the financial statements of companies that invest in stablecoin, a digital representation of a fiat currency managed and backed by a blockchain, the auditor must collect evidence of transactions from the blockchain (on-chain) or from an off-chain ledger managed by an intermediary. This study aims to expand the understanding of such transactions, outline possible configurations for the recognition of stablecoin balances and transactions in financial statements, and audit procedures for collecting evidence of these transactions. Based on actual transactions of stablecoin registered on the Ethereum blockchain, we present a hypothetical case of the accounting history of an audited company to demonstrate the challenges in establishing accounting and audit procedures for these novel transactions. We observe an abundance, diversity, and unprecedentedness in the stablecoin transactions studied. We further identify the need to adapt current audit procedures and create new ones, and rethink the very process of doing so. The findings could help auditors obtain more significant knowledge of the information required to assess a company’s financial statements when such statements include stablecoin transactions. In addition, the study addresses the evolving relationship between auditing, accounting, and information technology, and the problems in integrating accounting and information technology.

8 citations

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https://doi.org/https://doi.org/10.4192/1577-8517-v22_5

Or copy a formatted citation

@article{rubens2022,
  title        = {{Ledger to ledger: off- and on-chain auditing of stablecoin}},
  author       = {Rubens Moura de Carvalho et al.},
  journal      = {The International Journal of Digital Accounting Research},
  year         = {2022},
  doi          = {https://doi.org/https://doi.org/10.4192/1577-8517-v22_5},
}

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Evidence weight

0.56

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.53 × 0.4 = 0.21
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.