Big Four and Blockchain: Are Auditing Giants Adopting Yet?

How far have the Big Four gone while exploring distributed ledger technology, and can blockchain offer any particular perks for those companies?

"Because the Big Four work in such a wide scope of sectors, they are unable to dedicate serious time to blockchain. This makes sense, given that they cannot invest in every new technology set which comes along. One key thing to note is that many of the big four only got into blockchain when Crypto projects began using them to show more transparency. The Big Four are known to only get involved with something when their client base is using it, blockchain was and is no exception."

"My impression is that the Big Four are keen on blockchain as an additional area where they can provide consulting services rather than audit services. There has been a trend by audit firms to move into more lucrative consulting and blockchain offers them yet another opportunity for that strategy."

"Blockchain is one of the few technology sets that can actually aid in most auditing respects. Financial auditing can be assisted by an end-to-end blockchain-based company as all transactions will be open and verifiable. They will also be contained within one ledger, which is one of the largest problems for an independent financial audit. Of course, there is more than one type of audit. Blockchain can be deployed across different sectors to make, for example, a service level agreement audit more effective. Companies could be monitored using blockchain to ensure that they are meeting compliance and the clients wishes."

PwCCrypto/blockchain market reports: Yes.Blockchain-based software solutions: Yes.First-hand adoption: Yes.Investments in the crypto market: No.Having started accepting Bitcoin as a payment for a part of its services back in 2017, PwC today is arguably the Big Four company that is the most proactive in exploring cryptocurrencies and blockchain.

As per the accompanying press release published by the latter, it was allegedly the first time a "Large-scale blockchain organization" had been accepted as a Big Four audit client.

KPMGCrypto/Blockchain market reports: Yes.Blockchain-based software solutions: Yes.First-hand adoption: No.Investments in the crypto market: No.KPMG has not only been increasing its presence in the blockchain space, but has also been a member of the Wall Street Blockchain Alliance since 2017.Over the past 12 months, it has partnered with blockchain company Guardtime to offer blockchain-based services to clients; joined forces with the U.S. Food and Drug Administration to integrate blockchain in the pharmaceutical supply chain; and worked with United Arab Emirates officials to successfully test a blockchain-based Know Your Customer, or KYC, application.

DeloitteCrypto/Blockchain market reports: Yes.Blockchain-based software solutions: Yes.First-hand adoption: Yes.Investments in the crypto market: No.Deloitte was the earliest Big Four player to delve into the crypto space, as it announced its first blockchain lab in Dublin back in May 2016.

The company's August 2018 report entitled "Breaking Blockchain Open: 2018 Global Blockchain Survey" predicted that blockchain technology was getting closer to a breakout moment.

"The main question is: Will the Big Four lead in the creation of this new technology? Or will smaller, potentially more nimble, players jump into the space and take over significant market share from the Big Four?".Whether or not the Big Four will adopt blockchain in their regular service offerings, the fact that all four firms draw up regular reports on the crypto and/or blockchain market shows that they are interested and are closely following the developments in the industry.