AN EXAMINATION OF ASSURANCE SERVICES CURRENTLY (NOT) PROVIDED BY BLOCKCHAIN AUDITORS

Historically, financial reporting and audit procedures have depended on centralized systems, characterized by paper-based records, intermediaries, and a high risk of human error (Han et al. 2023). However, the emergence of blockchain has introduced a distributed, transparent, and immutable ledger system that could fundamentally change how financial data is recorded, stored, published, and audited (Tapscott and Euchner, 2019). This study seeks to empirically examine the current state of the blockchain assurance market from the perspective of auditors and advisors. Specifically, this dissertation seeks to address what assurance services auditors are currently (not) providing on blockchain ecosystems and why. How do auditors navigate and respond to the challenges associated with blockchain assurance? What are the primary auditing needs of blockchain clients, and how do these needs influence their choice of auditing services? This study applies a qualitative approach and uses semi-structured interviews with experienced blockchain auditors and advisors. The results indicate that auditors play a critical role in enhancing the security, functionality, and scalability of blockchain systems. There is a growing need for auditors to expand beyond traditional financial controls and incorporate expertise in economics and cryptographic mechanisms into their audit methodologies. Advisors in blockchain ecosystems play a distinct role compared to auditors, focusing on strategic decision-making, business viability, and long-term operational efficiency rather than compliance and security risk mitigation. They are strategic partners who assess technical feasibility and drive organizational transformation ethical accountability, and sustainable blockchain integration dimensions largely outside the scope of traditional auditing practices.