A Scientific Framework of Automated Accounting and Auditing on the Blockchain Technology Platform

Subject Areas : Information Systems

Payam Noori Doabi ¹ , Fraydoon Rahnamay Roodposhti ² , hamidreza kordlouie ³ , Hamshem Nikoomaram ⁴ , Ghodratolah Taleb Nia ⁵

1 - Department of Management and Economics, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Management and Economics, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
3 - Department of Management and Economics, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran.
4 - Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.
5 - Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran.

Received: 2024-09-06 Accepted : 2024-11-09 Published : 2024-12-16

Keywords: Automated Accounting and Auditing, Blockchain, Theoretical Framework, Conceptual Framework, Ethical Framework,

Abstract :

The objective of this research is to contribute to the advancement of knowledge in the field of automated accounting and auditing, with a particular focus on the use of blockchain technology. Furthermore, the research will seek to establish a theoretical, conceptual and ethical framework for the aforementioned processes. This research employs a teleological approach, which is defined as a method of inquiry that seeks to identify the purpose or end result of a phenomenon. To this end, a systems approach in the modern approach of Future Technology Analysis (FTA) was used to examine the fundamental concepts underlying blockchain and its applications in accounting and auditing. The fundamental concepts underlying automated accounting and auditing on the blockchain platform were organized and explained within a scientific framework that includes theoretical, conceptual, and ethical considerations. Based on the aforementioned findings, a conceptual, theoretical, and ethical framework was developed and elucidated based on content analysis derived from an understanding of the essential elements of the topic, its underlying rationale, and its operational mechanics. This was accomplished through the use of coding in Atlas.ti v9 and ConceptDraw software. Blockchain capabilities provide a platform for automated accounting and auditing in a scientifically, practically, and logically rigorous manner. The evolution of this research was meticulously designed and presented as a conceptual, theoretical, and ethical framework. The features, alterations, and potentialities of automated accounting and auditing on the blockchain technology platform collectively reinforce the necessity for further investigation, as they demonstrate the significant advantages that this technology offers in comparison to traditional methods. This research takes a novel, forward-looking approach and envisions the use of automated accounting and auditing on the blockchain technology platform. It presents, for the first time, comprehensive scientific frameworks and a systematic model for integrating the understanding of concepts, foundations, processes, and norms.

References:

- Ajzen, I. (1991). "The theory of planned behavior." Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Almeida, F. (2002). ''Organizações, pessoas e novas tecnologias''. Coimbra: Quarteto Editora.
- Amalathas, Tereka; Brande, Spencer; Catalano, Joe & Lucano, Isaac G. (2022). ''Models and Mechanisms of Public'', https://courses.lumenlearning.com/suny-buffalo-environmentalhealth/ chapter/integrative-behavioral-model.
- Araral, E. (2020). ''Why do cities adopt smart technologies? Contingency theory and evidence from the United States''. Cities, 106, 102873.
- Aripradono, H. W. (2021). ''Analisis Technology Readiness and Acceptance Model (TRAM) Pada Penggunaan Sport Wearable Technology'', Analysis of Technology Readiness and Acceptance Models for Sport Wearable Technology, 10 (1), pp. 68–77, doi: 10.34148/teknika.v10i1.330.
- Arntz, M., Gregory, T., and Zierahn, U. (2017). "Revisiting the Risk of Automation," Economics Letters, 159, pp. 157-160.
- Bahli, B., & Rivard, S. (2003). "The Information Technology Outsourcing Risk: A Transaction Cost and Agency Theory-Based Perspective," Journal of Information Technology, 18(3), pp. 211-221.
- Bell DeTienne, K. and Jackson, L.A. (2001). ''Knowledge management: Understanding theory and developing strategy'', Competitiveness Review: An International Business Journal, 11.
- Bergek, A., & Onufrey, K. (2013). "Is one path enough? Multiple paths and path interaction as an extension of path dependency theory." Industrial and Corporate Change, 23(5), 1261-1297.
- Block, JH; Colombo, MG; Cumming, DJ; Vismara, S. (2018). ''New players in entrepreneurial finance and why they are there''. Small Business Economics, 50(2):239–50.
- Borrás, S., & Edler, J. (2020). ''The roles of the state in the governance of socio-technical systems’ transformation''. Research Policy, 49(5).
- Bouten, M. (2008). ''Compatibility & technology acceptance: Consolidating, validating & extending concepts'', Faculty of Economics and Business Administration, Maastricht University, Maastricht, Netherlands.
- Breckler, S. J. (1984). "Empirical validation of affect, behavior, and cognition as distinct components of attitude." Journal of Personality and Social Psychology, 47(6), 1191.
- Chaudhuri, Atanu et al. (2022). ''Socio-technical capabilities for blockchain implementation by service providers: multiple case study of projects with transaction time reduction and quality improvement objectives'', Production Planning & Control, 0:0,
- Chen, L. D., Gillenson, M. L., & Sherrell, D. L. (2002). "Enticing Online Consumers: An Extended Technology Acceptance Perspective Information and Management, 39(8), 705–719.
- David, P. A. (1985). "Clio and the Economics of QWERTY." The American Economic Review, 75(2), pp. 332–337.
- Davis, F. D. (1989). "Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology." MIS Quarterly, 13(3), pp. 319–340.
- Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1992). "Extrinsic and Intrinsic Motivation to Use Computers in the Workplace." Journal of Applied Social Psychology, 22(14), 1111-1132.
- Davis, F.D., & Venkatesh, V. (2000). ''A theoretical extension of the Technology Acceptance Model: Four longitudinal field studies''. Management Science, 46(2), 186-204.
- Donovan, R. (2011). ''Theoretical Models of Behaviour Change''. SAGE Handb. Soc. Mark, pp. 15–31.
- Dowling, John, and Jeffrey Pfeffer. (1975). ''Organizational legitimacy: Social values and organizational behavior''. Pacific sociological review 18 (1):122-136.
- Dua, Aman. (2023). ''Review of Adoption Theories in the Context of Blockchain'', IMIB Journal of Innovation and Management 1(1) 46–57,.
- Erickson, K. (2017). ''Could Artificial Intelligence Threaten Accounting Jobs? '' Experts weigh in https://www.rasmussen.edu/degrees /business/blog/artificial-intelligence-accounting -jobs.
- Fischer, Dov. (2018). ''Ethical and Professional Implications of Blockchain Accounting Ledgers''. Available at SSRN: https://ssrn.com/abstract=3331009.
- Fishbein, M. (1979). ''A Theory of Reasoned Action: Some applications and implications'', Nebraska Symposium on Motivation, 27, 65–116.
- Fishbein, M. (2007). ''A Reasoned Action Approach: Some Issues'', Questions, and Clarifications, In I.
- Fishbein, M., & Ajzen, I. (1975). ''Belief, attitude, intention, and behavior: An introduction to theory and research: Addison-Wesley Pub. Co.
- Forbes (2018). ''The Digital Transformation of Accounting and Finance - Artificial Intelligence, Robots and Chatbots''. Available: https://www.forbes.com/sites/bernardmarr/2018/06/01/the-digital-transformation-of-accounting-and-finance-artificialintelligence-robots-and-chatbots/#463edabe4ad8 Retrieved: 27.2.2019
- Fraj, E. and Martínez, E. (2003). ''Las actitudes Como determinantes Del comportamiento ecológico del consumidor'': Análisis desde la perspectiva de la teoría de la acción razonada, Revista Española de Investigación de Marketing, 7 (2), pp. 57-77.
- Freeman, R. Edward. (1994). ''The Politics of Stakeholder Theory: Some Future Directions'', Business Ethics Quarterly, 4 (4), pp. 409 – 421.
- Galbraith, J.R. (1974). ''Organization design: An information processing view''. Interfaces, 4, 28–36.
- Geels, F.W. (2004), ''Understanding system innovations: a critical literature review and a conceptual synthesis'', in Elzen, B., Geels, F.W. and Green, K. (Eds), System Innovation and the Transition to Sustainability: Theory, Evidence and Policy, Edward Elgar Publishing, Cheltenham, pp. 19-47.
- Glanz, KR & Viswanath, K. (2008). ''Health behavior and health education: Theory, research, and practice''. New Jersey, USA: Wiley.
- Goodhue, D. L., & Thompson, R. L. (1995). ''Task-Technology Fit and Individual Performance''. MIS Quarterly, 213-236.
- Goos, M. & Manning, A. (2007). ''Lousy and Lovely Jobs: The Rising Polarization of Work in Britain''. The Review of Economics and Statistics, 89 (1).
- Greenman, C. (2017). ''Exploring the impact of artificial intelligence on the accounting profession''. Journal of Research in Business, Economics and Management, 8(3), 1451.
- Gulin, D., Hladika, M., & Valenta, I. (2019). ''Digitalization and the Challenges for the Accounting Profession''. In Proceedings of the ENTRENOVA-Enterprise Research Innovation Conference, 5 (1), pp. 428-437.
- Gunthrie, J. & Parker, L.D. (2016). ''Whither the accounting profession, accountants and accounting researchers? Commentary and projections'', Accounting, Auditing & Accountability Journal, 29 (1), pp. 2-10.
- Han, Hongdan; Shiwakoti, Radha K; Jarvis, Robin; Mordi, Chima; Botchie, David. (2023). ''Accounting and auditing with blockchain technology and artificial Intelligence: A literature review'', International Journal of Accounting Information Systems, 48.
- Han, Z; Niyato, D; Saad, W; Basar, T and Hjørungnes, A. (2012). ''Game theory in wireless and communication networks: theory, models, and applications''. Cambridge University Press.
- Herold, David M; Saberi, Sara; Kouhizadeh, Mahtab and Wilde, Simon. (2022). ''Categorizing transaction costs outcomes under uncertainty: a blockchain perspective for government organizations'', Journal of Global Operations and Strategic Sourcing, 15, 3.
- Heyman, Fredrik. (2016). ''Job Polarization, Job Tasks and the Role of Firms'', IFN Working Paper No. 1123.
- Jia, F.; Peng, S.; Green, J.; Koh, L.; Chen, X. (2020). ''Soybean Supply Chain Management and Sustainability: A Systematic Literature Review''. J. Clean. Prod, 225, 120254.
- Kaal, Wulf. (2019). ''Blockchain Solutions for Agency Problems in Corporate Governance, Economic Information to Facilitate Decision Making, '' Edited Book, Editor- Kashi R. Balachandran, World Scientific Publishers, U of St. Thomas (Minnesota) Legal Studies Research Paper No. 19-05.
- Karahanna, E., Straub, D.W., & Chervany, N. L. (1999). ''Information technology adoption across time: A cross-sectional comparison of pre-adoption and post-adoption beliefs''. MIS Quarterly, 23, 183-213.
- Khadka, R. & Kohsuwan, P. (2018). ''Understanding consumers’ mobile banking adoption in Germany: An integrated technology readiness and aceptance model (TRAM) perspective''. Catalyst, 18, pp. 56–67.
- Kim, G., Shin, B., and Lee, H. G. (2009). ''Understanding dynamics between initial trust and usage intentions of mobile banking''. Inform. Syst. J. 19, 283–311.
- Kim, K. K., & Prabhakar, B. (2004). ''Initial Trust and the Adoption of B2C E-Commerce: The Case of Internet Banking''. ACM SIGMIS Database: the DATABASE for Advances in Information Systems, 35(2), 50-64.
- Koufaris, M., & Hampton-Sosa, W. (2004). ''The Development of Initial Trust in an Online Company by New Customers''. Information & Management, 41(3), 377-397.
- Kummer, S; Herold, D. M.; Dobrovnik, M; Mikl, J. and Schäfer, N. (2020). ''A Systematic Review of Blockchain Literature in Logistics and Supply Chain Management: Identifying Research Questions and Future Directions'', Future Internet, 12(3), 60.
- Lee, M. K. O., and Turban, E. (2001). ''A trust model for consumer internet shopping''. Int. J. Elect. Commer. 6, 75–91.
- Li, L. and Zhou, H. (2020). ''A survey of blockchain with applications in maritime and shipping industry'' Information Systems and e-Business Management, pp. 1-19.
- Lin, C. & Sher, P. J. (2007). ''Integrating Technology Readiness into Technology Acceptance: The TRAM Model'', 24, pp. 641–657, Doi: 10.1002/mar.
- Liu, Ziyao et al. (2019). ''A Survey on Applications of Game Theory in Blockchain'', Computer Science, https://doi.org/10.48550/arXiv.1902.10865
- Lopes, J.R.N. et al. (2019). ''A New Model for Assessing Industrial Worker Behavior Regarding Energy Saving Considering the Theory of Planned Behavior, Norm Activation Model and Human Reliability''. Resour. Conserv. Recycl, 145, 268–278.
- Lowry, P. B., Vance, A., Moody, G., Beckman, B., & Read, A. (2008). ''Explaining and Predicting the Impact of Branding Alliances and Web Site Quality on Initial Consumer Trust of E-Commerce Web Sites''. Journal of Management Information Systems, 24(4), 199-224.
- Lupasc, A., Lupasc, I., & Zamfir, C.G. (2012). ''Impact of Intelligent Modern Technologies in Business''. Ovidius University Annals Economic Sciences Series, 12 (1), 580-585.
- Mahfuz, M. A., Khanam, L., and Hu, W. (2016). ''The influence of culture on m-banking technology adoption: an integrative approaches of UTAUT2 and ITM'', in Proceedings of the Portland International Conference on Management of Engineering and Technology (PICMET), 824–835.
- Mallat, N., Rossi, M., & Tuunainen, V. K. (2004). ''Mobile Banking Services''. Communications of the ACM, 47(5), 42-46.
- Martinez, M; Zhao, C; Blujdea, X; Han, A; Neely, P. Albores. (2019). ''Blockchain-driven customer order management'', International Journal of Operations & Production Management, 39, pp. 993-1022.
- McCallig, J.; Robb, A.; Rohde, F. (2019). ''Establishing the representational faithfulness of financial accounting information using multiparty security', network analysis and a blockchain''. Int. J. Account. Inf. Syst, 33, 47–58.
- McKnight, D. H., & Chervany, N. L. (2002). ''What Trust Means in E-Commerce Customer Relationships: An Interdisciplinary Conceptual Typology''. International Journal of Electronic Commerce, 6(2), 35-59.
- McKnight, D. Harrison, Larry L. Cummings, and Norman L. Chervany. (1998). ''Initial trust formation in new organizational relationships''. Academy of Management review 23.3: 473-490.
- Mitchell, J.C. (1969). ''Social networks in urban situations: Analyses of personal relationships in central African towns'', Manchester University Press.
- Moudud-Ul-Huq, S. (2014). ''The Role of Artificial Intelligence in the Development of Accounting Systems: A Review'', the UIP Journal of Accounting & Audit Practices, 12, (2), pp. 7-19.
- Noori Doabi, P., Rahnamay Roodposhti, F., Kordlouie, H., Nikoomaram, H., & Taleb Nia, G. (2024). 'Investigating automated accounting and auditing in the Blockchain platform with a fuzzy Delphi approach'. Innovation Management and Operational Strategies, 4(4), 418-437. Doi: 10.22105/imos.2024.445479.1333 (In Persian)
- North, Douglass C. (1990). ''Institutions, institutional change and economic performance'', Cambridge University Press.
- Ortega, A.; Frossard, P.; Kovačević, J.; Moura, J.M.F. and Vandergheynst, P. (2018). ''Graph signal processing: overview, challenges, and applications'', Proc IEEE, 106, pp. 808-828.
- Pollock, J., & Amernic, J. (1981). ''An Examination of Professional Commitment in Public Accounting'', Accounting, Organizations and Society, 6, (4), pp271-280.
- Prashant dongre, Rashmi. (2022). ''Study of factors influencing the use of blockchain technology in student information system at universities'', thesis for the degree of doctor of philosophy in computer science, Tilak Maharashtra Vidyapeeth, Pune.
- Rabey, M.A. (1989). ''Technological continuity and change among the Andean peasants: opposition between local and global strategies''. In S.E van der Leeuw & R. Torrance (eds.), what's New? A Closer Look at the Process of Innovation. London: Unwin Hyman, pp. 167-181.
- Rahnemay Roodpashti, Fereydon; Salehi, Alahkaram. (2009). ''Schools and theories of finance and accounting including theories, assumptions, models, techniques and tools'', publications of the Research Vice-Chancellor of Islamic Azad University, Central Tehran Branch, second edition.
- Rinehart, L.M.; Eckert, J.A.; Handfield, R.B.; Page, T.J., Jr.; Atkin, T. (2004). ''An assessment of supplier—customer relationships''. J. Bus. Logist. 25, 25–62.
- Rogers, E.M. (1962). ''Diffusion of innovations, (third ed.) '', Free Press, New York, NY.
- Rowlinson, M., Hassard, J., & Decker, S. (2014). ''Research strategies for organizational history: A dialogue between historical theory' and organization theory''. Academy of Management Review, 39(3), 250– 274.
- Saberi, M. et al. (2019). ''Blockchain technology and its relationships to sustainable supply chain management, International Journal of Production Research'', 57, pp. 2117-2135.
- Sawyer, S., & Jarrahi, M. H. (2014). ''Sociotechnical approaches to the study of Information Systems. In H. Topi & A. Tucker (Eds.), Computing handbook: Information systems and information technology'' (3rd ed., pp. 5-1–5-27). CRC Press. Doi: 10.1201/b16768.
- Schreyögg, G. and Sydow, J. (2011). ''Organizational path dependence: a process view, Organization Studies'', 32, (3), pp. 321-335. doi:10.1177/0170840610397481
- Scott, W.R. (1992). ''Organizations: Rational, Natural, and Open Systems''. Englewood Cliffs, N.J.: PrenticeHall.
- Sternberg, H.S; Hofmann, E. and Roeck, D. (2021). ''The struggle is real: Insights from a supply chain blockchain case'', Journal of Business Logistics, 42, pp. 71-87.
- Sumar, Ramiro Rodrigues. (2021). ''Accounting Automation and the Future of the Accounting Profession''. Revista Científica Multidisciplinar Núcleo do Conhecimento. Year 06, Ed. 06, 17, pp. 167-181.
- Taylor, S., & Todd, P. (1995). ''Decomposition and crossover effects in the theory of planned behavior: A study of consumer adoption intentions''. International Journal of Research in Marketing, 12(2), 137-155.
- Tian, F. (2016). ''An agri-food supply chain traceability system for China based on RFID & blockchain technology''. In Proceedings of the 2016 13th International Conference on Service Systems and Service Management (ICSSSM), Kunming, China, 24–26; pp. 1–6.
- Törnqvist, Erik and Forss, Linn. (2018). ''Automated accounting in accounting firms - A qualitative study on impacts and attitudes'', Master's Thesis in Business Administration III, 30 Credits, spring.
- Torres de Oliveira, Rui. (2017). ''Institutions, Middleman, and Blockchains – Shuffle and Re-Start'', Univesity of Queensland– Busiess School, Available at SSRN: https://ssrn.com/abstract=3027633 or http://dx.doi.org/10.2139/ssrn.3027633
- Tushman, M.L. and Nadler, D.A. (1978). ''Information processing as an integrating concept in organizational design''. Acad. Manag. Rev, 3, 613–624.
- Uwadiae, O. (2015). ''Financial Reporting Automation''. Deloitte. www2.deloitte.com/ content/dam/Deloitte/ng/Documents/audit/Financial%20Reporting/ng-financial-reporting-automation-1.pdf. [2018-02-16].
- Vallerand, R. J. (1997). ''Toward a Hierarchical Model of Intrinsic and Extrinsic Motivation'', in Advances in Experimental Social Psychology (29), M. Zanna (ed.), Academic Press, New York, pp. 271-360.
- Van Harreveld, F., Nohlen, H. U., & Schneider, I. K. (2015). ''The ABC of ambivalence: Affective, Behavioral, and Cognitive consequences of attitudinal conflict''. Advances in Experimental Social Psychology, 52, 285-324.
- Vasarhelyi, M.A. (2012). ''Financial accounting standards should not matter: It’s just a layer'', J. Inf. Syst., 26 (2), pp. 1-1.
- Venkatesh et al. (2020). ''Argued that blockchain is a guaranteed future for traceability in supply chain social sustainability''.
- Venkatesh, V., & Bala, H. (2008). ''Technology acceptance model 3 and a research agenda on interventions''. Decision Sciences, 39 (2), 273-315.
- Venkatesh, V., & Speier, C. (1999). ''Computer technology training in the workplace: A longitudinal investigation of the effect of mood''. Organizational behavior and human decision processes, 79(1), 1-28.
- Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). ''User acceptance of information technology: Toward a unified view''. MIS Quarterly, 27(3), 425-478.
- Walker, M., (2013). ''How far can we trust earnings numbers? What research tells us about earnings management'', Account? Bus.
- Williamson, O. E. (1975). ''Markets and Hierarchies: Analysis and Antitrust Implications''. New York, NY: Macmillan Publishers.
- Williamson, O.E. (1973). ''Markets and hierarchies: Some elementary considerations''. Am. Econ. Rev, 63, 316–325.
- Wu, R., and Lee, J.-H. (2017). ''the comparative study on third party mobile payment between UTAUT2 and TTF''. J. Distrib. Sci. 15, 5–19.
- Zhang, Jinxin and Wu, Meng. (2021). ''Cooperation Mechanism in Blockchain by Evolutionary Game Theory'', 1258730.