The American Institute of CPAs (AICPA) has issued a new white paper to help auditors providing SOC for Service Organization (SOC) reports on organizations that have incorporated blockchain into their service delivery systems.

Implications of the Use of Blockchain in SOC for Service Organization Examinations was developed by a Working Group of the AICPA Assurance Services Executive Committee (ASEC). The paper examines the skills and competencies auditors need to perform such engagements, the unique features of blockchain, the risks associated with using blockchain, and how the use of blockchain by service organizations may affect their SOC examinations.

As the use of blockchain increases, its likely that more service organizations will decide to use blockchain. Auditors hired to perform their SOC engagements need a deeper understanding of the technology and the risks it presents to the service organization and those who use their services, said Amy Pawlicki, AICPA Vice President Assurance and Advisory Innovation.

The paper is divided into two parts:

Part 1

Part 2

SOC 1, SOC 2 and SOC for Supply Chain

While this paper specifically addresses SOC 1 and 2 examinations, it may also be helpful to a practitioner performing a SOC for Supply Chain examination. In March 2020, the AICPA unveiled a new supply chain risk management reporting framework to help manufacturers, producers, distribution companies, and their customers and business partners identify, assess and address supply chain risks. Information on the guide can be found here.

Service organization management is responsible for identifying and assessing blockchain-related risks, and for designing and implementing effective controls to mitigate those risks to acceptable levels, explained Pawlicki. When performing a SOC engagement, its critical for auditors to understand those risks and controls.

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AICPA Whitepaper Focuses on Conducting SOC Audits Involving Blockchain - CPAPracticeAdvisor.com