Accounting and control procedures in risk assessment of information environment distortion

Management and Audit Department, Southwest State University, Kursk, Russia

^* Corresponding author: milg_irina@mail.ru

Abstract

Accounting and control is the foundation of prosperous business. It is impossible to create an effective internal control system without taking into account the organizational and methodological aspects of the accounting process. Therefore, there appears a need for an integrated assessment of accounting and control procedures as a single unified system. The application and introduction of state-of-the art digital technologies is of great importance during the development of high-technology business. In this regard, there is a need to find a system or technology that could make it possible to generalize accounting and control procedures to reduce the risk of the information environment distortion. One of such technologies that implements the formation of a continuous sequential chain of blocks is the blockchain technology. The present article specifies the structure and content of accounting and control procedures blocks using the blockchain technology. The selected blocks include accounting and control procedures based on the sequence of the accounting process. As a rule, control procedures applied by an economic entity do not cover all the risks of accounting information distortion. For that reason, one needs to assess them in order to determine the risks and minimize them. To assess the risks of the information environment distortion, a methodology based on the evaluation of their coverage completeness by accounting and control procedures has been developed. Through a well-rounded assessment of the information environment distortion risk, the proposed methodology will allow one to form accounting information systematically as well as in a quality manner and manage control procedures in order to make effective management decisions.