COSO Releases Blockchain PaperBy
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released Blockchain and Internal Control: The COSO Perspective.
The paper demonstrates that with careful implementation and integration of blockchain, the distinctive capabilities of the technology can be leveraged to better manage risk and create more robust controls for organizations.
Commissioned by COSO and sponsored by Deloitte, the paper provides perspectives for using COSO’s Internal Control—Integrated Frameworkto evaluate risks related to the use of blockchain in the context of financial reporting and to design and implement controls to address such risks. It’s intended to help inform decisions regarding oversight, risks, and internal control over financial reporting (ICFR) in a blockchain environment.
“Blockchain creates new risks and the need for new controls,” said COSO Chairman Paul Sobel. “When an organization evaluates the use of blockchain through a COSO lens, it enables the board of directors and senior executives to better understand the context and make more informed assessments of the technology’s potential and applicability with respect to internal control.”
To see the full paper, go to www.coso.org.