Danny McCance 24 Apr 2018 10:27am

EY introduces blockchain tech for audits

The Big Four firm has announced the pilot of the EY Blockchain Analyzer – a collection of new blockchain audit technologies for reviewing cryptocurrency transactions

The proprietary technology will enable EY teams to perform audits of businesses using cryptocurrencies, as well as gathering and analysing “entire transaction data from multiple blockchain ledgers”.

Paul Brody, EY global innovation blockchain leader, said that understanding these technologies and exchanges was the first step in developing specific 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,” he said.

“EY Blockchain Analyzer will be utilised by the auditor to analyse transactions on a blockchain and help provide insight to the finance function,” he added.

The technology has been designed to work with various different cryptocurrencies including bitcoin, ether, bitcoin cash and litecoin, as well as various other crypto-assets.

Following this initial pilot, the firm said it plans to scale up the technology to develop “customised regulatory compliance and reporting nodes”.

The move follows an announcement by rival firm PwC at the end of last year that it would be the first Big Four firm to accept cryptocurrency as payment.

Last month, PwC also announced that it would be using blockchain technology to carry out out private equity audits.