Closing the Knowledge Gap: Reluctance in the Accounting Industry to Engage in the Blockchain Market
Keywords:
leadership, accountability, ethics, Blockchain, accounting, auditing, taxation, digital assetsAbstract
Blockchain, introduced with Bitcoin in 2008, enhances transparency, security, and efficiency in financial transactions (Nakamoto, 2008). Though its potential spans industries, the accounting sector lags in adoption due to regulatory uncertainty and limited expertise (Dai & Vasarhelyi, 2017). This study surveys California’s Central Valley accounting professionals, finding reluctance to engage with blockchain clients due to poor understanding and regulatory concerns. This hesitation highlights a leadership gap and missed opportunities to enhance accountability and ethical practices through blockchain’s transparency. Firms should invest in blockchain education, develop tailored auditing frameworks, and adopt compatible software to stay competitive as regulations evolve and demand grows.
References
AICPA. (2019). Blockchain technology and its potential impact on the audit and assurance profession. American Institute of Certified Public Accountants.
AICPA. (2022). Cryptocurrency taxation guidelines for professionals. American Institute of Certified Public Accountants.
AICPA. (2023). Accounting for and auditing of digital assets. Retrieved from https://www.aicpa.org
Alles, M.G. (2018). Examining blockchain technology for auditing. Current Issues in Auditing, 12(2), A19–A28
Alles, M.G. (2019). Blockchain and the future of accounting. Journal of Emerging Technologies in Accounting, 16(1), 55–61. https://doi.org/10.2308/jeta-52449
Bass, B.M., & Riggio, R.E. (2006). Transformational leadership (2nd ed.). Psychology Press.
Bell, E., Bryman, A., & Harley, B. (2018). Business research methods (5th ed.). Oxford University Press.
Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Bryman, A. (2016). Social research methods (5th ed.). Oxford University Press.
Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48.
Casino, F., Dasaklis, T.K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification, and open issues. Telematics and Informatics, 36, 55–81.
Creswell, J.W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). Sage.
Creswell, J.W., & Plano Clark, V.L. (2017). Designing and conducting mixed methods research (3rd ed.). Sage.
Dai, J., & Vasarhelyi, M.A. (2017). Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), 5–21. https://doi.org/10.2308/isys-51804
Deloitte. (2016). Blockchain: A game-changer for audit processes? Deloitte Insights.
Dillman, D.A., Smyth, J.D., & Christian, L.M. (2014). Internet, phone, mail, and mixed-mode surveys: The tailored design method (4th ed.). Wiley.
Etikan, I., Musa, S.A., & Alkassim, R.S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/10.11648/j.ajtas.20160501.11
EY. (2022). The evolving tax landscape of NFTs.
Field, A. (2018). Discovering statistics using IBM SPSS statistics (5th ed.). Sage.
Financial Accounting Standards Board (FASB). (2022). Digital assets: Proposed changes to accounting standards. Retrieved from https://www.fasb.org
Hair, J.F., Page, M., & Brunsveld, N. (2020). Essentials of business research methods (4th ed.). Routledge.
ICAEW. (2020). Blockchain and the future of accountancy. Institute of Chartered Accountants in England and Wales.
IMF. (2022). Crypto taxation and global regulatory challenges.
Internal Revenue Service (IRS). (2019). Rev. Rul. 2019-24: Tax treatment of cryptocurrency transactions. Retrieved from https://www.irs.gov
IRS. (2021). Frequently asked questions on virtual currency transactions.
Kokina, J., Mancha, R., & Pachamanova, D. (2017). Blockchain: Emergent industry adoption and implications for accounting. Journal of Emerging Technologies in Accounting, 14(2), 91–100.
Kshetri, N. (2018). Blockchain’s roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80–89.
Lombardi, R., Villiers, C.D., Moscariello, N., & Pizzo, M. (2021). The disruption of blockchain in auditing: A systematic literature review. Accounting, Auditing & Accountability Journal, 34(4), 1056–1082. https://doi.org/10.1108/AAAJ-09-2020-4901
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. Bitcoin.org.
OECD. (2020). Tax challenges arising from digitalization. OECD Publishing.
Pallant, J. (2020). SPSS survival manual: A step by step guide to data analysis using IBM SPSS (7th ed.). McGraw-Hill Education.
Peters, G.W., & Panayi, E. (2016). Understanding modern banking ledgers through blockchain technologies: Future of transaction processing and smart contracts on the Internet of Money. Handbook of Blockchain, Digital Finance, and Inclusion, 1, 239–278
Peters, G.W., Panayi, E., & Chapelle, A. (2015). Trends in cryptocurrencies and blockchain technology: A monetary theory and regulation perspective. Journal of Financial Perspectives, 3(2), 92–113.
Pilkington, M. (2016). Blockchain technology: Principles and applications. Research Handbook on Digital Transformations
PwC. (2021). Global crypto taxation report. PricewaterhouseCoopers. Retrieved from
https://www.pwc.com/gx/en/services/tax/publications/global-crypto-taxation-report.html
Rehman, S., Khan, B., Arif, J., Ullah, Z., Aljuhani, A.J., Alhindi, A., & Ali, S.M. (2021). Bi-directional mutual energy trade between smart grid and energy districts using renewable energy credits. Sensors, 21(3), 856. https://doi.org/10.3390/s21030856
Rozario, A.M., & Thomas, C. (2019). Reengineering the audit with blockchain and smart contracts. Journal of Emerging Technologies in Accounting, 16(1), 21–35.
Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson.
Schmitz, J., & Leoni, G. (2019). Accounting and auditing at the time of blockchain technology: A research agenda. Australian Accounting Review, 29(2), 331–342.
SEC. (2022). Regulatory developments in crypto taxation.
Sutton, N., & Samavi, R. (2020). Blockchain and financial audit: A review of potential implications. Journal of Accounting Literature, 39(1), 1–24.
Treleaven, P., Brown, R.G., & Yang, D. (2017). Blockchain technology in finance. Computer, 50(9), 14–17.
Yermack, D. (2017). Corporate governance and blockchains. Review of Finance, 21(1), 7–31. https://doi.org/10.1093/rof/rfw074
Yin, R.K. (2018). Case study research and applications: Design and methods (6th ed.). Sage.
Zhang, Y., Xue, K., & Liu, J. (2020). Security and privacy on blockchain. ACM Computing Surveys, 53(1), 1–34. https://doi.org/10.1145/3379469
