FACTORS LEADING TO THE ADOPTION OF BLOCKCHAIN TECHNOLOGY APPLICATION IN FINANCIAL REPORTING

Shahid Saheb Shaiku^*divya Devalla

• VIT-AP University, Amaravati, India

The study identifies and measures the factors influencing blockchain implementation in specific auditing areas, particularly financial reporting. The research analysed accounting professionals' awareness of information and communication technologies (ICT), data security, data privacy, and training among accounting professionals. This study presents an empirical analysis to examine the extent of these factors influence blockchain technology implementation in financial reporting and auditing. Hence, the study conducted a survey targeting accounting practitioners, chartered accountants, financial analysts, and auditors, aiming to analyse and test hypothesized relationships using structural equation modelling in AMOS software. We found a significant influence of blockchain technology usage on the practices of financial reporting and auditing, leading to enhanced accuracy and transparency, reduced audit time and increased trust in financial reports. Key findings indicate that while blockchain technology offers significant advantages, widespread implementation faces hurdles such as regulatory compliance, technological integration, and stakeholder acceptance. Researchers can use these findings to determine potential areas for further research. In addition, this research provides information valuable to practitioners in the field, academics, industry professionals, and policymakers considering integrating blockchain technology with financial reporting and auditing.