Technical Staff
May 22, 2021

We at The American Anti-Corruption Institute (AACI) follow the Internal control literature and guidelines issued by the Committee of Sponsoring Organizations of the Treadway Commission, known as COSO (COSO.org). In July 2020, COSO issued a guideline entitled “Blockchain and Internal Control: The COSO Perspective”. The guidelines discussed the impacts of blockchain disruptive technology on the components and the associated principles of internal control. ” It provides perspectives for using the 2013 Framework to 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 is intended to help inform decisions regarding oversight, risks, and internal control over financial reporting (ICFR). The paper also should be of value to the various stakeholders involved in financial reporting, within the context of their own environments 1.”

Internal control is a major part of the Certified Anti-Corruption Manager (CACM) management credential offered by The AACI 2. Starting from January 1, 2022, the internal control part of the CACM shall include the significant matters COSO included in its guideline with respect to blockchain technology.

COSO defines blockchain as “a secure, transparent, irreversible digital ledger shared across participants.” There is not one blockchain. There are many kinds of blockchains. Blockchain brings many opportunities and eliminates human error. However, it has its own challenges and risks.

Click here to VIEW or DOWNLOAD the COSO guidelines “Blockchain and Internal Control: The COSO Perspective“.

Notes

1 Read more on https://www.coso.org/Documents/Blockchain-and-Internal-Control-The-COSO-Perspective-Guidance.pdf

2 Read more on https://www.theaaci.net/Certified-Anti-Corruption-Manager-(CACM)