20 banks in Taiwan are being joined by the world’s four biggest auditing firms – Deloitte, EY, KPMG and PwC to try a blockchain service.
According to a local news report on Thursday, the blockchain trial will initially allow the auditing firms to conduct so-called external confirmation – the process of obtaining and evaluating audit evidence – for a group of selected companies that are publicly traded on the island.
Traditionally, external confirmation is conducted manually by auditing firms to verify the authenticity of public companies’ financial transactions with third parties.
Developed by Taiwan’s Financial Information Service Co. (FISC) together with the 20 banks, the new platform moves the public firms’ transaction data onto a blockchain, where the banks participate as validators.
The goal is to allow auditing firms to view the transactions through a traceable and tamper-proof chain of data in distributed manner, streamlining and automating the confirmation process. FISC expects the new technology to reduce the confirmation time from typically “half a month” to “within a day.”