Are Traditional Global Disclosure Frameworks Too Old for Crypto?

Auditchain is a decentralized accounting, reporting, audit, and analysis virtual machine that automates and provides proof of assurance on the world’s financial and business information.

Global Accounting Services will generate $550 Billion in revenue in 2021 and is expected to grow to over $600 Billion in 2023. The AUDT Token Generation Event that is currently underway, is used for settlement of financial reporting and assurance obligations, royalty payments for developers and auditors of Process Control NFTs and for robust governance on the Auditchain Protocol.

Reconciling Global Transparency

Traditional financial audit and periodic financial disclosure are the underpinnings of financial markets. They are not sufficient for issuers of digital assets and DeFi. Furthermore, the adoption of crypto assets led by Tesla, PayPal and Square is revealing material conflicts with periodic disclosure frameworks. The information in financial reports as the result of increased speed and volatility of the typical business cycle is neither useful nor reliable.

Auditchain Virtual Machine

Accounting, financial reporting, audit and analysis Control Process NFTs are developed by accountants and professionals on the Auditchain Protocol and are audited by a network of CPAs and Chartered Accountants to prove that they function correctly. Royalties are paid in AUDT to the developers and auditors each time they are used.

Global Fraud and Abuse

Billions are lost due to fraud every year in every industry. The United Kingdom has been especially hit hard with the loss of Carillion, Thomas Cook and its beloved Patisserie Valerie. Regulators do not prevent fraud. Traditional audit engagements DO NOT detect fraud. The Auditchain Protocol is solving problems that governments and regulators cannot.

A small number of large public accounting firms provide audit to 95% of the global capital markets. One firm takes a small sample of data from the enterprise during an audit with no confirmation. Would you trust Bitcoin if it were centralized and one miner took a “sample” of the transactions with no confirmation? 

The Era of Decentralized Professional Services

The first era is expected to launch in September of 2021. This era will allow anyone to analyze any financial statement filed by listed companies by submitting a link to a network of validators on the Auditchain Protocol running “Pacioli” the network client.  A detailed analysis is rendered in 30 seconds revealing error and “other anomalies”. The expected popularity of this service will likely raise substantial awareness and move corporate governance, the investment community, and the institution of accountancy toward adoption of the Auditchain Protocol.

The second era is expected to launch by the end of 2021. Billions are spent every year on professional services to “tune” internal and disclosure controls. Now enterprises and professional services firms can turn a “control” into an asset and compete in the new decentralized professional services economy.

The world’s CPAs, Chartered Accountants and professionals will write and own Process Control NFTs that automate internal and disclosure controls. The NFTs pay royalties in AUDT to the developers and the auditors who proved that they work correctly each time they are used. Liquidity for the NFTs is also enabled on the Auditchain Process Control NFT Platform.

The third era arrives when more and more Process Control NFTs are contributed to the Auditchain Virtual Machine by the world’s professionals. The institution of accountancy moves from manual tasks and hourly fees to royalty payments in a decentralized continuous audit and reporting protocol ecosystem that makes the capital markets safer and far more transparent.

The AUDT token is used for settlement of royalties between developers and auditors of Process Control NFTs, settlement of audit and financial reporting obligations and an extremely robust array of governance features. Decentralized governance is undertaken by the community of AUDT holders instead of centralized bureaucratic processes.

The accounting, reporting and audit domain is highly centralized and complex. Stakeholders collaborate as members of the DCARPE Alliance Association which sets standards and acts as the governance council for the Auditchain Protocol.