The Accountant Quits Podcast Episode 13 | Ian Grigg on the Evolution of Trust, Triple Entry Accounting and a New Way of Audit
Earlier this year, I had read a collection of 7 articles on ‘a new way of auditing’ written by Ian in 2009 whereby he had proposed to ‘perform the check ourselves by relying on a community of volunteers without the need to appoint an external auditor’.
The inability of the auditors to spot the failures that led to the financial crisis had been challenged, and Ian questioned whether ‘audits are part of the problem rather than the solution’.
Ian Grigg is considered as one of the pioneers of financial cryptography.
His groundbreaking work for inventing the ‘Ricardian Contract’ has brought him acclaim and attention from all over the globe.
Ian is well known for having coined the term ‘Triple Entry Accounting’, where back in 2005 he proposed a new concept of having a third entry as a digitally signed receipt to avoid transaction frauds.
In this episode, we discuss;
- How technology can incentivize people to collaborate instead of cheating and;
- A new way of audit without the need to appoint an external auditor;
- Limitations of sampling audit
- The future of centralized audit providers;
- How TEA helps to prevent financial failures and frauds;
- His newly published book called the 'Identity Cycle';
- And much more.
This episode is brought to you by AuditChain - the world's first decentralized continuous audit and real time reporting protocol.
Traditional audit methodology focuses on “materiality”, not accuracy. We are constrained by time and cannot audit 100% of the transactions, and therefore we perform sampling.
AuditChain decentralizes audit and uses an independent assurance methodology that automates auditing tasks, and continuously audits 100% of the transactions.
With AuditChain, Chartered Accountants and professionals will write and own Process Control NFTs that automate internal and disclosure controls, where these NFTs pay royalties in return.
With more and more automation, accountants will increasingly find themselves becoming redundant. If you are a forward thinking CPA or Chartered Accountant, and want to participate and be in touch with the latest developments from AuditChain in decentralizing the audit profession using blockchain, you should apply for membership by visiting DCARPE Alliance.
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