The effect of blockchain technology on the accounting and assurance profession: evidence from GCC

Purpose This study aims to determine how blockchain technology (BCT) affects the accounting and assurance profession in the Gulf Cooperation Council (GCC). Design/methodology/approach The study covers 29 well-established blockchain (BC) user entities in Bahrain. Data were gathered through a questionnaire distributed in the first quarter of 2024 from 116 professionals with exposure to BCT in their real life. The five independent variables such as smart contracts, fraud detection, triple entry accounting, continuous audit and privacy and security were used to measure the relationship with the smart partial least square-structural equation model usage. Findings The findings revealed that four independent variables – smart contracts, triple-entry accounting, privacy and security and fraud detection – have a significant and positive impact on BC accounting, but “continuous audit” has a negative impact. In addition, BC assurance significantly and favorably correlates with all five independent variables, except for “Smart Contracts.” Research limitations/implications BCT is used by a handful of companies in Bahrain, and those that do are only applying it in very specific contexts and are not often involved in accounting or assurance. Practical implications The study provides the perceptions of practitioners who are first-hand of this emerging technology. The research findings will facilitate the companies in embracing BCT. Originality/value To the best of the authors’ knowledge, this is the first research from GCC regarding Bahrain.