Blockchain Technology, Fraud and Accountability

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Table of Contents

Comparative Analysis
Review
References

Comparative Analysis

Methodology

It is important to note that Boylan and Hull (2022) utilized qualitative research design to gain more in-depth insight into how fraudulent activities manifest in accounting. However, both T&R Staff (2022) and Associated Press (2022) are secondary sources that rely on the utilization of primary data to make their conclusions. Therefore, the methodological comparison is greatly different between these sources, but T&R Staff (2022) and Associated Press (2022) are similar to each other.

Findings

Both T&R Staff (2022) and Associated Press (2022) find that there is a substantial risk behind cryptocurrencies due to the potential of fraudulence and volatility if left unregulated. However, all three sources (Boylan & Hull, 2022; T&R Staff, 2022; Associated Press, 2022) recognize the great opportunity offered by blockchain technology, which is increased accountability.

Recommendations

The study (Boylan & Hull, 2022) suggests using blockchain technology to improve accountability and recommends its use to combat fraudulent activities. However, both T&R Staff (2022) and Associated Press (2022) acknowledge that there are risks associated with the current state of cryptocurrencies, which is why they suggest adopting the technology but not the existing forms of electronic money.

Review

Fraud and BlockChain

Fraudulence is a core problem in accounting and finance overall, which has ethical, economic, and legal implications. Boylan and Hull (2022) assert that prevention of fraud is impossible to prove, and fraudulent activities can be reduced through the use of automatic identification system (AIS) systems. In contrast, T&R Staff (2022) claims that the wild volatility of cryptocurrencies makes them unappealing as a solution to the issue. Similarly, such currencies carry their host of fraudulence, such as pyramid schemes (Associated Press, 2022). In other words, electronic solutions are possible, but the existing ones are problematic.

Accountability Through Block Chain

It should be noted that fraudulence in finance is best combatted through transparency, accountability, and openness. Recent developments in money and payment methods, such as instant payment systems and stable coins, are two examples of innovations that have the potential to have far-reaching implications. It is reported that five technological systems can help in the improvement of the accounting role (Boylan and Hull, 2022). According to Boylan and Hull (2022), the use of blockchain can improve accountability, which leads to a reduction in the rate of fraudulent activities. Similarly, cryptocurrencies can help ordinary citizens fight inflation, but with a surge in demand, new forms of fraudulence take place as a result. However, on the contrary, some experts suggest that the wild volatility in cryptocurrencies value has made it easy for many corporate treasurers to ignore the opportunity hidden behind the substantial risk (T&R Staff, 2022, para. 2). In other words, one should not dismiss cryptocurrencies entirely, because they bring a higher level of accountability despite their flaws.

Block Chain is the Answer

By reviewing the literature, it is evident that the answer to fraudulence and other major accounting issues is blockchain technology, not cryptocurrencies. The study (Boylan & Hull, 2022) suggests using blockchain technology to improve accountability and recommends its use to combat fraudulent activities. On the contrary, both T&R Staff (2022) and Associated Press (2022) acknowledge that there are risks associated with the current state of cryptocurrencies, which is why they suggest adopting the technology but not the existing forms of electronic money.

References

Associated Press. (2022). Bitcoin pyramid schemes wreak havoc on Brazils New Egypt. Market Watch. Web.

Boylan, D. H., & Hull, J. E. (2022). Have accounting information systems significantly helped in detecting fraudulent activities in accounting?The Journal of Applied Business and Economics, 24(3), 45-56. Web.

T&R Staff. (2022). Digital currencies underpin a sci-fi future for treasury. ALM: Treasury and Risk. Web.

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