Transforming internal audit into using Blockchain Technology within the Department of National Treasury in Bloemfontein

Abstract

The study seeks to investigate the adoption and potential application of Blockchain Technology (BT) in a public sector treasury environment. The process of BT adoption by its nature is highly technical hence the need to craft a framework for the organizational and operational strategies for the Bloemfontein Treasury environment. The expected benefit of BT adoption would be that it provides for the immutable, reliable and visible traceability of records. This process will also offer accountability and transparency which may boost the operations of the internal audit activity (IAA). BT involves contemporary technology that can be manipulated for use in some large-scale organizational settings because of its potential for managing complex processes. This study also discusses numerous significant application areas associated with BT for internal controls. Internal auditors can use BT to provide maximum value on governance, risk management processes, and the implementation of the provisions of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The study followed a qualitative approach, the findings were from the sample of seven (7) respondent that do not represent the entire population in internal auditing. The data collection, processing and analysis. A schedule of interviews was employed for collecting data. The questionnaire was analysed using descriptive statistical tables and graphs, while the interviews were analysed thematically but in reference to the research objectives. It was found out that the Free State Provincial Treasury in Bloemfontein has failed to invest in IAA in the form of obtaining new skills and knowledge progression. The IAA was willing to test and adopt BT to enhance its performance in the organization. This study contribution describes the potential drivers and drawbacks of BT in the IAA adoption, as well as the effects of its implementation. This study also has provided the theoretical contributions for determining BT advancement on the innovation curve, thus, as of now, possibility of adopting and advancing BT is on course. Organizations should be at the forefront of technology development that should be invested on BT, and that could reach new heights of adoption and implementation of the all the processes it involved.