KNOWLEDGE, ATTITUDES & PERCEPTIONS (KAP) OF BLOCKCHAIN TECHNOLOGY IN AUDITING: A CASE OF PAKISTAN

Abstract

Evolution of emerging technologies is reshaping auditing and financial reporting.  Blockchain Technology (BCT) is one of these technologies and is considered capable of affecting the auditing.  It is increasingly recognized as a transformative innovation with the potential to reshape auditing practices.  Nevertheless its adoption in auditing is affected not only by its technical capabilities but also by auditors’ knowledge, attitudes, and perceptions.  In the context of Pakistan the present study examines these factors, as the auditing profession continues to face challenges related to efficiency and transparency.  Qualitative research design was used based on semi structured interviews with thirty (30) auditing professionals including Chartered Accountants (CAs), trainee students, and experts affiliated with professional bodies.  Data was analyzed through thematic analysis to identify recurring patterns in interviewees’ responses.  The results indicate that while auditors generally demonstrate a reasonable level of awareness of BCT, their understanding of its practical application in auditing remains limited.  Attitudes toward the technology are cautiously optimistic.  The participants acknowledged its potential to enhance audit quality, reliability and reduce dependence on intermediaries.  At the same time some concerns related to lack of technical expertise, data privacy, implementation costs and regulatory uncertainty considerably affect their perceptions and willingness to adopt BCT.  Although the auditing professionals in Pakistan recognize the strategic importance of BCT but its broader adoption depends on targeted professional training, greater institutional willingness and development of supportive regulatory frameworks. By offering empirical insights from the audit professionals, this study contributes to the limited literature on BCT adoption in developing economies and provides practical implications for professional bodies, regulators and audit firms seeking to support digital transformation in the auditing.