EY Trials Proprietary Blockchain Audit Technology

EY announced it had started testing its new technology EY Blockchain Analyzer, which allows the accounting services major to perform better audits of blockchain companies.

Ernst & Young (EY), one of the Big Four professional services groups, announced it had launched a trial of its EY Blockchain Analyzer, a set of blockchain audit tools aimed at improving the analysis of cryptocurrency transactions and operations. The technology will help EY audit teams improve audits on companies operating with digital currencies, blockchain assets, liabilities, smart contracts, and equity.

EY Blockchain Analyzer will help EY auditors collect a company’s entire transactions dataset from all existing blockchain ledgers. The audit team can then use the data to analyze transactions. EY’s solution is designed to operate with many cryptocurrencies, including Bitcoin, Ether, Litecoin, and Bitcoin Cash.

This blockchain technology has drawn on EY’s previous experience in dealing with big companies in the US, Europe, and Japan, among them exchange platforms, investment funds, cryptocurrency mining ventures, and wallet services.

Jeanne Boillet, head of EY Global Assurance Innovation, commented:

“As digital technology continues to advance, we are focused on developing innovative approaches to the audit process and providing confidence and trust to the capital markets. As companies are also focusing on how they embed technologies like blockchain into their financial processes, we are innovating the audit to meet their evolving needs and those of investors.”

Paul Brody, who leads EY Global Innovation Blockchain, said:

“Understanding exchanges and cryptocurrencies is the first step in our ability to develop tools to test various blockchain-based business contracts. These technologies lay the foundation for automated audit tests of blockchain assets, liabilities, equities and smart contracts. EY Blockchain Analyzer will be utilized by the auditor to analyze transactions on a blockchain and help provide insight to the finance function.”

EY’s next step will be launching several other pilots to scale its blockchain audit technology, working on the development of personalized regulatory compliance and reporting nodes, among other things.

It seems that blockchain audits are becoming a trend with the leading professional services providers. We reported on Tuesday that Deloitte, the largest in the Big Four circle, had performed an audit of blockchain platform ICONOMI.