EY plans to pilot a suite of blockchain audit technologies that have the ability to perform a review of cryptocurrency business transactions. Known as EY Blockchain Analzer, the technology will support EY audit teams and aims to act as a foundation for the testing of blockchain assets, liabilities, equity and smart contracts.
The EY Blockchain Analyzer is intended to help EY audit teams gather an organisation’s entire transaction data from multiple blockchain ledgers. Auditors will then be able to use the data gathered to perform an analysis of the transactions and identify any transaction outliers.
The suite is designed to support testing of multiple cryptocurrencies as well as other crypto-assets which are managed or traded by exchanges or asset management firms.
EY Global assurance innovation leader Jeanne Boillet commented: “As digital technology continues to advance, we are focused on developing innovative approaches to the audit process and providing confidence and trust to the capital markets.
“As companies are also focusing on how they embed technologies like blockchain into their financial processes, we are innovating the audit to meet their evolving needs and those of investors.”
EY Global innovation blockchain leader Paul Brody said: “Understanding exchanges and cryptocurrencies is the first step in our ability to develop tools to test various blockchain-based business contracts.
“These technologies lay the foundation for automated audit tests of blockchain assets, liabilities, equities and smart contracts. EY Blockchain Analyzer will be utilized by the auditor to analyse transactions on a blockchain and help provide insight to the finance function.”
EY intends to introduce multiple pilots following the initial pilot so that the technology can be scaled to include customised regulatory compliance and reporting nodes.