Investment News in Brief

EY piloting blockchain audit tools

News in Brief

Today EY announced a pilot for a suite of tools to enable them to audit cryptocurrency transactions. The announcement focused on public blockchain transactions, but likely it will be adapted for permissioned blockchains as well.

The technology is intended to support EY audit teams performing audits on companies that engage in cryptocurrencies. They’re able to pull together data from multiple blockchain ledgers including Bitcoin, Ether, Bitcoin Cash and Litecoin.

The auditors developed the tool based on experience with clients around the globe including investment funds, exchange platforms, cryptocurrency mining companies and wallet providers.

Jeanne Boillet, EY Global Assurance Innovation Leader, said: “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.”

Paul Brody, EY Global Innovation Blockchain Leader, 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 analyze transactions on a blockchain and help provide insight to the finance function.”

Next steps include developing nodes for customized regulatory compliance and reporting.