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Abstract

There have been many studies on the blockchain, however blockchain research in the accounting field is scarce. The article outlines the characteristics and steps to apply blockchain in accounting. The article also identifies and measures the factors affecting the application of blockchain in accounting in enterprises, proving that the application of blockchain impacts the quality of the accounting information system of enterprises. The article shows that incorporating blockchain in accounting will help the accounting at businesses optimize the security, safety, and transparency of accounting information. We collected data on 195 manufacturing firms in six sectors. This study’s primary data analysis method is the SEM structural equation modeling method. The article used AMOS software to evaluate and measure the influence of each factor on the application of blockchain and the effect of blockchain on the accounting information system in enterprises. The article analyzed four aspects: the level of information technology of the accountant (IT), Information Security Infrastructure (SI), Training (TR), and Legality and Regulation (LR), affecting the application of blockchain in the business. The independent variables TR (training) and IT (information technology) have an impact on BL (Blockchain). We also find that the independent variable IT (information technology) has the most substantial impact on Blockchain adoption, followed by the independent variable TR (training), which has the second most influential impact on Blockchain adoption. For the accounting information system, the results show that applying blockchain will substantially impact accounting information, along with the safety factor of information infrastructure SI also has an evident influence. The results show that applying blockchain in accounting, information technology, and professional training are core issues with significant influence. The issue of guaranteed infrastructure also determines the effectiveness and efficiency of blockchain applications for accounting information systems. I declare that this is my scientific work; it is my original work. I commit that all data sources and ideas are my research and have never been published anywhere.

Plain Language Summary

Blockchain’s impact on accounting

There have been many studies on the blockchain, however blockchain research in the field of accounting is very rare. The article outlines the characteristics and steps to be taken when applying blockchain in accounting. The article also identifies and measures the factors affecting the application of Blockchain in accounting in enterprises, proving that the application of Blockchain has an impact on the quality of the accounting information system of enterprises. The article shows that incorporating blockchain in accounting will help the accounting at businesses optimize the security, safety, and transparency of accounting information.

Keywords

blockchain accounting auditing smart contract smart accounting

Introduction

Recently, Blockchain technology has spread to other application areas besides banking and finance. Using blockchain with accounting in the era of industrial revolution 4.0 will bring significant benefits, it is expected to eliminate about 50% of the work of accountants, saving billions of dollars for businesses globally. When companies integrate blockchain into the industry, their supply chain, production, and business activities will be streamlined, with fewer costs for businesses. On a national and global scale, we will move toward a healthier economy, avoiding the risk of fraud and ensuring accurate and truthful data. Changes in accounting-audit roles and practices will require new skills for practitioners, and businesses need to reorganize their accounting and auditing personnel.

Blockchain in accounting involves concepts such as blockchain, knowledge of computer languages, and computer security systems (Schmitz & Leoni, 2019). So, should accountants, management controllers, and auditors be trained in these techniques, or should they consider linking them to algorithms and computer experts? The answer depends on how vital blockchain can be in business practice, but at least it is inevitable that accounting audit personnel need to be able to read and understand Blockchain code.

In one of their studies, Vinh and Huong (2019) presented the differences in bookkeeping between conventional accounting and accounting using Blockchain technology. If in normal accounting activities, an accountant needs to make double entries, blockchain only requires one access to provide information to all parties without worrying about authenticity. Accounting records cannot be edited or changed once saved to the blockchain, even if requested by the owner of the accounting system. Because every daily transaction is recorded and authenticated on the Blockchain platform, the integrity of financial records is guaranteed (Lien, 2019; Vinh & Huong, 2019).

Recently, a series of cases have come to light in Vietnam due to the modification of accounting data. According to data from NASDAQ, the world’s four leading auditing organizations including PWC, Deloitte, Ernst & Young, and KPMG have established research committees on blockchain and its applications in accounting and auditing. Large technology enterprises in Vietnam are also pioneers in applying Blockchain technology: Viettel, TMA Solution, FPT, MISA, etc. However, studies that provide a theoretical basis for blockchain in accounting are still remarkably lacking in Viet Nam.

Specifically, MISA—an accounting software company in Vietnam, has built and applied MeInvoice.vn in e-invoice software businesses. Continuing this technology application is also implemented by Vakaxa Technology Joint Stock Company. As a result, information security at enterprises increases, purchasing costs are reduced; buyers receive documents quickly; Tax authorities can look up and check easily, etc… Blockchain-based electronic banking connection service application integrated with Misa accounting software. With this application, storing information about changes in the state of transactions in the blockchain ensures the publicity of information in transactions, serving the purpose of later reconciliation through the relationship between the three parties: accountant, chief accountant, director (making transaction orders, checking transactions and approving transactions; paying bank—execute the trade and beneficiary bank—confirm the transaction). Besides, other application platforms in accounting on the blockchain are also researched by technology and software companies in Vietnam, such as the project on smart contract (smart contract—time optimization), cost and information security), A triple-entry Accounting information system—with the close linkage of steps in the execution phase from input data to a processing system. ERP management and applications are integrated during the implementation.

Thus, in Vietnam, Blockchain has been applied in accounting, but the basis for designing interfaces in blockchain is still not understood and clarified even by accounting experts.

The article answers the following questions:

What are the characteristics of applying blockchain in accounting?

What are the processing steps when applying blockchain in accounting?

What factors affect the application of blockchain in accounting in enterprises?

To what extent do the factors affect the application of blockchain in accounting in enterprises?

The article explores the following topics:

Overview of Blockchain in Accounting

Blockchain operation process applied in accounting

Blockchain’s influence on accounting

Factors affecting the application of blockchain in accounting and accounting information systems in enterprises

Literature Reviews

Blockchain technology allows a public register of transactions to be maintained and organized chronologically based on a decentralized network of users. We can imagine blockchain as an extensive book, freely and freely readable by everyone, able to write but not erased or destroyed (Bonsón & Bednárová, 2019). Blockchain is characterized by three principles: transparency (information is “public,” i.e., shared among users); data protection (no tampering, information verification by network nodes, no data deletion, anonymity); decentralization (operating without a single agency responsible for management) (Cai, 2021). Blockchain is described as a technology where new transactions are gathered together into a block and added to the chain of existing transactions by a very complex cryptographic process to execute. In blockchain, there are hashes, a type of digital signature used for in-chain authentication (Figure 1).

Figure 1.

Features of blockchain.

ICAEW—Institute of Chartered Accountants in England and Wales clarified the functions of blockchain that make a difference and the advantages when using blockchain in accounting (Chartered Accountants in England and Wales [ICAEW], 2023):

○ New transactions originate from a single user but propagate to a network of ledgers with no central control

○ All transactions and records are permanent and cannot be tampered with or discarded, and

○ Many blockchains are programmable, allowing the automation of new transactions and control through a smart contract.

Blockchains also allow for a higher level of transparency than traditional accounting, reducing the risk of embezzlement and misappropriation of assets. For example, a business grants property, goods, or money to another individual or entity. Donors can easily track how their assets were delivered to the final recipient (owner). Currently, there exists a situation of “quadruple entry bookkeeping,” that is, four accounts Debit, Credit because it is recorded on both sides (assuming buyer and seller) the entries are of equal value. This model can be dramatically changed by blockchain by lowering the internal accounting walls of each company and making entries directly on the blockchain; bookkeeping allows transactions to be recorded on a single basis, truthful, verifiable, and identical on each side. This may start as an insider transaction, but over time, it can grow to incorporate multiple units, creating a sort of “general ledger.” While the data in each transaction can be encrypted, if the origin or ownership of an asset is at stake, then previous transactions must be made public for verification. Finding ways to balance the priorities of competition, decentralization, privacy, and security is a current area of research for blockchain experts. When combined with a digital system ID, identity blockchains store login information for individuals, simplifying identity functionality and processes and allowing organizations to share identity recognition. Similarly, an intellectual property rights database can be distributed to streamline identifying intellectual property and requesting and paying for access (Bonyuet, 2020).

Many comments have been made about the influence of Blockchain technology on accounting information systems from many angles. Specifically, they argue that (Freshbooks, 2023):

Blockchain technology affects accounting information system (AIS) databases. In a blockchain-based AIS, the accountant still prepares the financial reports as required by regulations. They will continue influencing policies such as selecting and recognizing validators and acting as final validators. Due to the subjective involvement of accountants, when auditing, audit evidence still needs to be collected to form an audit opinion in a blockchain-based AIS. While digitizing the authentication process in blockchain reduces error rates, documentation and tracing costs, and data immutability reduces incentives and opportunities for fraud, AIS is nevertheless based on blockchain and does not guarantee that financial reports are accurate and fair. Therefore, gathering appropriate audit evidence is still essential in auditing. This is also similar to the study of Tan and Low (2019): The digitalization of blockchain can revolutionize accounting and auditing by improving transparency, reducing fraud risks, automating processes, and enhancing the efficiency and effectiveness of audits. However, it also presents challenges that auditors must adapt to as blockchain technology becomes more widespread in financial reporting. While blockchain technology can enhance transparency, reduce specific errors, and provide a more tamper-resistant ledger, it does not guarantee financial statements’ complete accuracy and fairness. Ensuring the reliability of financial information in a blockchain-based accounting system requires a combination of technological safeguards, rigorous auditing, adherence to regulations, and ongoing vigilance to address potential vulnerabilities and issues in the system.

Despite being a polarizing and elusive technology for many, blockchain has gained considerable traction among accountants. Currently, the world’s acceptance of cryptocurrencies has become widespread. This makes blockchain in accounting a hot topic (Bonsón & Bednárová, 2019).

Three aspects of blockchain can be applied in accounting, namely Smart contracts, Decentralized, distributed ledger technology (Freshbooks, 2023; Sellhorn & Gornik-Tomaszewski, 2006):

Smart Contracts are one of the applications of blockchain that can perform duplicate transactions in accounting. With smart contracts, trades are automatically executed when certain conditions are met, which helps businesses automatically perform payroll transactions, bank deposit reconciliations, and dealings with customers and suppliers…, limiting errors encountered when doing manual work and reducing administrative costs. Blockchain application also helps businesses against fraud and fraud. While smart contracts offer many advantages for accounting transactions, it’s important to note that their implementation and integration with existing accounting systems may require careful planning and consideration. Additionally, they may not replace all aspects of traditional accounting, particularly in complex financial reporting and regulatory compliance, where human expertise is still crucial. However, they can be a powerful tool for automating routine and repetitive accounting tasks improving efficiency, accuracy, and transparency in financial processes.

Distributed, decentralized ledger technology is a typical application of blockchain, this technology replaces the middleman when transferring money: you can make a deposit transaction without going through a credit card processor or through an intermediary bank. Blockchain replaces the middleman through the role of miners. Miners perform transaction validation securely using a consensus protocol or a set of rules based on mutual agreement. Decentralized, distributed ledger technology, as exemplified by blockchain, has the potential to disrupt the traditional financial industry by offering a more efficient, cost-effective, and inclusive way to transfer money and conduct financial transactions. Its ability to cut out intermediaries while maintaining security and transparency has made it a transformative force in finance.

Altering Transactions on the Blockchain: Previously, traditional accounting used paper invoices to prove transactions were made. As digital payment methods emerge, digital receipts will be more vulnerable to forgery. Blockchain is a solution to this problem because of the immutable nature of blockchain, once there is consensus to authenticate a transaction into the blockchain, it is almost impossible to change or delete that transaction. If someone changes the data of a transaction on the blockchain, it will affect the hash value and there will be data tampering warnings. A hash value is a generated string of characters and is often used as a password in blockchain transactions. It protects transaction data and is used to prove that a transaction occurred at a specific time. While blockchain offers many advantages for digital payments and receipts, it’s important to note that its widespread adoption and integration into existing payment systems are ongoing processes. Scalability, regulatory compliance, and user-friendly interface challenges must be addressed to make blockchain-based solutions accessible to a broader user base. Nonetheless, blockchain technology has the potential to enhance the security, transparency, and authenticity of digital payment methods, mitigating the risks associated with digital receipt forgery and other fraudulent activities.

Example of applying blockchain in accounting: You buy a particular commodity with bitcoin, and through blockchain, the following steps will be performed:

The public consensus protocol verifies the transaction as legitimate. The transaction enters the blockchain with a digital signature and is time-stamped. The blockchain network generates an identical hash on both your end and the car dealer’s end of the shared public ledger. An auditor searches the blockchain to find an equal hash string. If the auditor considers no matching hash, this is a red flag for the auditor that someone has altered the data (Freshbooks, 2023) This shows that the unique feature of the hash creates excellent advantages for auditors when searching for audit evidence for transactions that leave traces of suspected errors. For auditors and users of blockchain systems, a mismatched hash serves as a clear and immediate indicator that the integrity of the data has been compromised in some way. It is a crucial feature that contributes to the security and trustworthiness of blockchain technology, allowing parties to verify that data has not been altered without their knowledge.

How Blockchain Will Support Accountants and Auditors

Blockchain is a tool that uses completely new documents, procedures, and information storage and monetary transactions. With these outstanding advantages, it changes the accounting profession and improves the operations of organizations and businesses. Using blockchain can clearly locate ownership of assets and obligations over liabilities, while significantly increasing accountants’ efficiency. Blockchain technology helps auditors keep track of the audit trails they are performing (Dyball & Seethamraju, 2022; Freshbooks, 2023). These features collectively make blockchain a groundbreaking technology for revolutionizing document management, business processes, and financial information management. It introduces a paradigm shift in how data is recorded, stored, and verified, offering increased trust, security, and efficiency in various industries, including finance, supply chain, healthcare, and more.

Blockchain accounting is not intended to replace traditional accounting. Instead, it affects the performance and record keeping of conventional accounting, and there will be many jobs in which blockchain cannot wholly replace traditional accounting.

Blockchain in accounting is also significant for audits. If blockchain is applied, the auditor’s work on checking the generation and accuracy of financial data will be released almost entirely for them to focus on other things. Blockchain technology also minimizes the tracking of documents because the Blockchain process is enough to prove the safety and reliability of transactions and data to help auditors (Sarwar et al., 2021).

However, blockchain also has limitations for auditors because, with blockchain, you can easily confirm a transaction has occurred but do not know the details of that metric. Blockchain, for example, can record that you buy something with bitcoins, but accountants can’t tell if it’s buying a car or a gift for your boss.

Theoretical Framework of Research

Operation of Blockchain

Blockchain operation consists of five steps, summarized in Figure 2:

Figure 2.

Operation of blockchain (Desplebin et al., 2021).

In Figure 2: In the first step (1), agent A registers with agent B a request written in the Blockchain register (e.g., financial transaction, accounting, contract, delivery, transfer of rights, etc.). A will transmit the request to the users gathered in a network (e.g., Internet). This request by A is then added to a “block” of information, a set of written requests entered into the registry over a particular time. This block is placed “in the queue” (step 2). The actual block information in the blockchain will be required to be validated by user consensus.

This validation is an essential step in Blockchain technology (step 3). It is a cryptographic protocol that allows the block’s information to be validated according to the consensus of the network users. Once the block is validated by user consensus, it is time-stamped and added to the blockchain (step 4). This assertion is immutable, blocks are added in an orderly manner over time. This blockchain is accessible by all network members (A and B in the example of Figure 1) who have identical copies of the information recorded in the blockchain (step 5).

The smart contract refers to a computer algorithm designed to form, control, and provide information about content owners. The program runs on the blockchain, verifying or executing transactions independently. In a smart contract, two or more parties must sign to carry out the terms of the contract. The object of the contract needs to be clearly defined in the contract, the subject must be within the context of the smart contract environment. The terms and requirements in the smart contract need to be precise and detailed. Once these requests are made, users can enter into blockchain-based smart contracts. However, this agreement must be negotiated before the terms are included in the blockchain.

Typically, a smart contract automatically triggers an action based on an agreement between two users maintained on the blockchain. When the seller intends to sell, the smart contract governs the delivery until the goods are delivered from one person to another. Once the delivery is completed, the money will be paid to the seller and all information about the transaction will be listed and stored in a public database (Bybit Learn, 2023).

Blockchain—Changes in Accounting

Accounting information systems are closely related to business operations. Demirkan et al. (2020) argue that accounting has evolved step by step to adapt to technology (computer, paper, magnetic recording, cloud…). In today’s digital age, blockchain is also a database with its characteristics and can best support accounting. Blockchain is an accounting technique that involves transferring ownership of assets and maintaining accurate financial information on a ledger. For accountants, using blockchain provides clarity on asset ownership and the existence of obligations and can significantly improve operational efficiency.

Blockchain implementation can lead to the unnecessary existence of a system of authorities such as banks, clearing agencies, lawyers, etc. Businesses can save payment costs as well as minimize disputes between partners. Furthermore, a tax authority, regulator, or supervisory authority can be granted viewing access to the blockchain and can observe and track the transaction in real-time. This can lead to reduced costs, increased efficiency of regulatory activities, and increased compliance, reducing opportunities for financial crime, thereby making records more reliable (Desplebin et al., 2019).

Blockchain can help accountants better understand the available resources and obligations of the organization, freeing up resources to focus on planning and pricing rather than record keeping. Along with other automation trends, blockchain will lead to perfect and complete processing of transactions, but not by accountants. Instead, successful accountants will be the ones who assess the facts, interpret the blockchain records, match the documents with the facts, and evaluate them. For example, blockchain can track the existence of a debtor, but an accountant must assess its recoverable and economic value. An asset with ownership can be verified using blockchain records, but the actual condition, location, and weight will still need to be guaranteed by the accountant. Blockchain is an alternative to bookkeeping and reconciliation (Faccia et al., 2020).

The data control solution is the main difference between the traditional databases currently supporting accounting and blockchain. Zhang et al. (2018) states, “for Blockchain, any attempt to manipulate transactions requires reprocessing of all subsequent blocks in the chain.” As a result, many consider blockchain immutable or immune to outside interference, which is the main attraction of blockchain. Blockchain will be the only solution that provides secure data with reliability and impenetrability.

In addition, the control solution offered by blockchain has a high level of transparency through the use of public and private keys, blockchain has a public “register” that allows many objects and many user configurations to be used (Fuller & Markelevich, 2020). Blockchain also allows for a high degree of security (preventing companies from adding their transactions again, stipulating which users have access to what types of information, and identifying authorized individuals to add blocks of transactions into the string). These characteristics will allow blockchain to be exceptional support for ensuring the truthfulness and accuracy of accounting books such as Diary and Ledger… at the enterprise level and with third parties (shareholder or independent auditor) (Rückeshäuser, 2017).

In Figure 3, we see external partners in the enterprise’s accounting information exchange system. This is the crucial point in blockchain, known as tripartite accounting. Tripartite accounting allows third parties to rely on the authenticity of accounting information within the entity. Blockchain-based accounting makes it more likely that participants will not want to be transparent about their sensitive financial data with their partners, service providers, and tax departments. This can cause a competitive disadvantage and several other problems (Rückeshäuser, 2017). Therefore, there is a balance between the disadvantages and advantages associated with blockchain that needs to be examined on a case-by-case basis for each type of organization and each sector of activity.

Figure 3.

Accounting system in enterprises applying Blockchain (Rückeshäuser, 2017).

From a tax control perspective, if the state applies blockchain based on three-party accounting, it will be easier to control and detect tax fraud (Liu et al., 2019). In France, tax fraud (value-added tax, corporate income tax, property tax, local tax, and other taxes) is estimated at between 80 and 100 billion euros in the year. 2017. (Source: National Alliance Solidaires-Finances report).

The impact of blockchain for accountants or management controllers in the business is at least in that they will save considerable working time.

Blockchain, with the implementation of smart contracts (Smart Contract) significantly reduces accountants’ bookkeeping, especially if related objects are connected. Recurring transactions with suppliers and customers can be easily managed using Smart Contract technology after performing the actual service by triggering invoices, payments, etc… The automation of transactions This task can avoid a lot of adjustment work, periodically correcting errors by the accounting department: errors in invoice numbers, transfers that do not correspond to the invoiced amount, etc. (Wang & Kogan, 2017).

The essence of blockchain enables continuous evaluation of financial accounting documents (O’Neal, 2005). This will upset the work of accountants and financial controllers both in day-to-day tasks and annual planning. Making yearly reports, the results of the months before and after the end of the accounting period… are demanding jobs for accountants, but blockchain will move to eliminate this work, allowing translation. The accounting service only makes forecasts for year N + 1 instead of checking for year N, freeing time for more proactive accountants.

Blockchain in the entity will minimize the activity records between the business, customers, and suppliers because these partners will also have their blockchain reflecting the same activity between the two parties. Thereby, it is possible to ensure close tracking of purchases and sales (origin, route, etc.) and control between units (Deshpande et al. (2017).

Blockchain presents great opportunities but also poses many challenges for the accounting profession. From the above research, it can be seen that there is a real challenge in transforming the tools, skills, and even mental states of the accounting profession. Companies that produce accounting software have begun to invest in Blockchain technology. This change has a significant impact on the accounting profile and will undoubtedly have new professions emerging related to accounting. The issue of training qualified human resources today for tomorrow’s accountants is also a big challenge. Currently, large companies (Deloitte, PWC …) have taken over the technology and developed Blockchain-related solutions (Gullkvist, 2018)

Researching the Factors Affecting the Application of Blockchain in Enterprises

Research Sample

The study’s survey sample was 195 businesses through questionnaires. Respondents to the questionnaire were representatives of the company’s Board of Directors, technical experts, production workers, accountants, and corporate management experts. The survey aims to identify and measure factors influencing Blockchain adoption in Vietnam. Survey results were obtained through processing with AMOS data analysis software. The survey period is from February 2022 to July 2022. This study used structural equation modeling (SEM) with AMOS-SPSS. Based on the empirical rule of Do-Thi and Do (2022), the minimum sample size needed for a study according to this model is n > 8 × number of variables = 8 × 18 = 144. We chose a sample size of n = 195 from the actual sampling situation. This sampling method is suitable for researching influencing factors in businesses and has been used by the author in previous research (Giang et al., 2021; Phu, 2023).

The selection of six industries for the research sample comes from the following reasons: these are the six industries with the most statistics on cases related to the transparency of accounting data in 2021 (Data from the General Statistics Office). Vietnam). The data of sampled enterprises account for 90% to 100% of the enterprises listed on the Hanoi Stock Exchange (according to the website cophieu68.vn). This is also an appropriate sample selection method used by the author in a previous study (Giang et al., 2021).

No.	Scope of activity	Number of firms	Proportion (%)
1	Fertilizer	24	12.3
2	Steel manufacturing	41	21.2
3	Plastic packaging	30	15.4
4	Rubber processing	17	8.7
5	Mineral	28	14.4
6	Food processing	55	28.2
	Total	195	100

Source. Author’s classification.

Identify and Measure the Factors Affecting the Adoption of Blockchain in Enterprises

Research Model and Research Hypothesis

According to several previous studies, Blockchain adoption is influenced by the IT level of accounting, information security infrastructure, training, legality, and regulations (Liu et al., 2019; Schmitz & Leoni, 2019). According to, eight significant factors influencing the adoption thus identified are relative advantage, uncertainty, top management support, technology readiness, industry, regulatory environment, competitive pressure, and trust. At the same time, the article also proves that the application of blockchain affects the accounting information of enterprises (Table 1 and Figure 4).

Table 1.

Variables Affecting Blockchain Adoption and Accounting Information.

The level of information technology of the accountant (IT)
1	Qualifications of accountants have an impact on blockchain adoption in businesses (IT1)
2	The transformation of accounting data into electronic information has an impact on blockchain adoption in businesses (IT2)
3	Technology platforms in enterprises have an impact on blockchain adoption in businesses (IT3)
Information security infrastructure (SI)
4	The electronic data system is diverse and challenging to grasp and has an impact on blockchain adoption in businesses (SI1)
5	Diversity of accounting transactions has an impact on blockchain adoption in businesses (SI2)
6	Excessive access and lack of control have an impact on blockchain adoption in businesses (SI3)
Training (TR)
7	Innovating the training program has an impact on blockchain adoption in businesses (TR1)
8	Innovating teaching methods have an impact on blockchain adoption in businesses (TR2)
9	Changing the perception and attitude of practitioners has an impact on blockchain adoption in businesses (TR3)
Legality and regulations (LR)
10	Regulations of accounting related to blockchain have an impact on blockchain adoption in businesses (LR1)
11	The transformation of accounting theory based on technology foundation has an impact on blockchain adoption in businesses (LR2)
12	The change in the methods of implementation and transmission of information has an impact on blockchain adoption in businesses (LR3)
Applying blockchain in the enterprise (BL)
13	Smart contracts have an impact on blockchain adoption in businesses (BL1)
14	The digital currency has an impact on blockchain adoption in businesses (BL2)
15	Record keeping has an impact on blockchain adoption in businesses (BL3)
Impact of Blockchain application on accounting information (AI)
16	Cut down on accounting staff affects the quality of accounting information of enterprises (AI1)
17	Changing technology and human resources affect the quality of accounting information of enterprises (AI2)
18	Information security affects the quality of accounting information of enterprises (AI3)

Source. Author.

Figure 4.

Model of research.

The construction of these variables is similar to the view of Li and Juma’h (2022).

Research Hypotheses

H1: The level of information technology of accountants affects Blockchain adoption

H2: Information Security Infrastructure affects Blockchain adoption

H3: Training has an impact on Blockchain adoption

H4: Legitimacy and regulation affect Blockchain adoption

H5: The level of information technology of accountants affects accounting information

H6: Information security infrastructure that affects accounting information

H7: Training has an impact on accounting information

H8: Legitimacy and regulation affecting accounting information

H9: Blockchain application in business affects accounting information

Factors Affecting the Application of Blockchain and Information Accounting

The result of the rotated matrix with six groups of factors gives the result KMO coefficient = 0.847 > 0.5, sig = .000 < .05, so the model meets the requirements (Table 2). Groups with non-converging components will be eliminated. LR1 and LR3 do not converge, so these two variables are eliminated, the number of variable groups is only five groups. The cumulative coefficient is 68.81% > 50%, showing that the independent variables explain 68.81% of the dependent variable.

Table 2.

KMO and Bartlett’s Test.

Kaiser-Meyer-Olkin measure of sampling adequacy.		0.847
Bartlett’s test of sphericity	Approx. chi-square	1,682.798
	Df	105
	Sig.	.000

Source. Results from SPSS 23 software.

Using the results in Table 3—Pattern Matrixa to analyze the factors in AMOS software, the research results are as follows:

Table 3.

Pattern Matrix.^a

	Factor
	1	2	3	4	5
TR2	.871
TR1	.826
TR3	.816
BL2		.857
BL3		.822
BL1		.809
IT1			.853
IT2			.820
IT3			.716
AI2				.873
AI3				.850
AI1				.664
SI1					.844
SI2					.791
SI3					.720

Source. Results from AMOS software.

Note. Extraction Method: Principal Axis Factoring. Rotation Method: Promax with Kaiser Normalization.

The results of Regression Weights (Table 4) show that independent variables TR (training) and IT (information technology) have an impact on BL (Blockchain) (sig < .05). The variable SI (information infrastructure security) has an effect on AI (accounting information system), and the variable BL (Blockchain) also affects the AI variable (accounting information system), so hypotheses H1, H3, H6, and H9 are accepted (Sig < .05). Independent variables SI (Security of Information Infrastructure) do not affect BL (Blockchain) (sig > .05). Hypothesis H2 was rejected. Similarly, variables IT, and TR have no impact on the dependent variable AI (sig > .05). Hypotheses H5 and H7 were rejected.

Table 4.

Regression Weights: (Group Number 1 - Default Model).

	Estimate	S.E.	C.R.	p
BL<—TR	0.363	0.084	4.302	***
BL<—IT	0.410	0.093	4.390	***
BL<—SI	0.005	0.103	0.045	.964
AI<—SI	0.353	0.102	3.468	***
AI<—IT	−0.097	0.095	−1.020	.308
AI<—TR	0.098	0.085	1.145	.252
AI<—BL	0.367	0.091	4.028	***

Source. Results from AMOS software.*** 000.

From Table 5, we see that the independent variable IT (information technology) has the most substantial impact on Blockchain adoption with a weight of 0.410, followed by the independent variable TR (training) having the second most influential impact on the adoption of blockchain. Apply blockchain with a weight of 0.363. For the accounting information system, the results show that when applying blockchain, there will be a substantial impact on accounting information with an influence of 0.367, followed by the SI information infrastructure safety factor, which also has a very significant effect on accounting information at 0.353 (Figure 5).

Table 5.

Standardized Regression Weights: (Group number 1 - Default model).

	Estimate	S.E.	C.R.	p
BL<—TR	0.363	0.084	4.302	***
BL<—IT	0.410	0.093	4.390	***
BL<—SI	0.005	0.103	0.045	.964
AI<—SI	0.353	0.102	3.468	***
AI<—IT	−0.097	0.095	−1.020	.308
AI<—TR	0.098	0.085	1.145	.252
AI<—BL	0.367	0.091	4.028	***

Source. Results from AMOS software.*** 000.

Figure 5.

The influences of factors on the application of blockchain and information accounting.

This study also shares the same view with Najjar et al. (2023), Dyball & Seethamraju (2022), and Yin and Ran (2023) about blockchain applied in accounting in the case of a global supply network consisting of many interconnected suppliers. Using blockchain technology also affects sustainability across complex multi-tiered supply networks. The findings suggest that blockchain can enhance supplier engagement. The transparency and traceability of suppliers’ global supply networks will be improved when they join blockchains. Therefore, blockchain will reduce information asymmetry and limit fraudulent opportunistic behaviors of participating parties.

Furthermore, blockchain’s connectivity and rapid information-sharing features help increase supplier predictability and create sustainable supply networks (Dyball & Seethamraju, 2022; Najjar et al., 2023; Yin & Ran, 2023). Besides that, training and information technology factors are critical for successfully adopting and implementing blockchain technology. They ensure that individuals and organizations have the knowledge, skills, and resources needed to harness the benefits of blockchain while mitigating risks and challenges associated with its deployment. Blockchain technology’s complexity and the need for specialized expertise make training and IT considerations essential for blockchain projects.

Conclusion and Inspiration

Conclusion

The result of the analysis, in four aspects: level of information technology of the accountant (IT), Information Security Infrastructure (SI), Training (TR), Legality and Regulation (LR), and Blockchain application in the enterprise (BL). The independent variables TR (training) and IT (information technology) have an impact on BL (Blockchain). The SI variable (information infrastructure security) has an impact on AI (accounting information system), and the BL variable (Blockchain) also affects the AI variable (accounting information system). Independent variables SI (Security of Information Infrastructure) do not affect BL (Blockchain); IT and TR variables do not affect the dependent variable AI. We also find that the independent variable IT (information technology) has the most substantial impact on Blockchain adoption, followed by the independent variable TR (training), which has the second most influential impact on Blockchain adoption. For the accounting information system, the results show that applying blockchain will substantially impact accounting information, along with the safety factor of information infrastructure SI also has an apparent influence.

The results show that applying blockchain in accounting, information technology, and professional training are core issues with significant influence. The issue of guaranteed infrastructure also determines the effectiveness and efficiency of blockchain applications for accounting information systems.

Enlightenment

Given the current developments, we wonder, with the advantages of blockchain, when can we apply this technology in accounting?

In Vietnam, the initial application of blockchain for accountants can consider the issue of invoice processing through the Blockchain process. Businesses can operate a payment network, a decentralized exchange, or “manage” invoices based on blockchain. A type of service that will provide automation of invoice processing cycles for issuers and recipients, invoice and data security, and real-time invoice tracking; provides instant invoice sharing to a defined group of actors (e.g., administrator, audit firm, factor).

The use of these technologies will now be linked to computer programs. All technologies, such as remote data storage and retrieval, radio frequency identification, sensors, the Internet of Things, or other factors enabling network connectivity, can help accountants stay connected with smart contracts to perform the accounting of sales, inventory, production, etc. They are automatically integrated into the account and enabled to perform automatic accounting procedures simultaneously. Therefore, Smart Accounting can directly connect to the physical environment of the entity. These technologies enhance the ability of accountants to access, analyze, and manage financial data efficiently. They also promote collaboration, data accuracy, and security, enabling accountants to stay connected with their organizations and clients, even in remote or decentralized work environments.

The independent variable IT (information technology) has the most substantial impact on Blockchain adoption, followed by the independent variable TR (training), which has the second most crucial impact on Blockchain adoption. Research results also show that applying blockchain will substantially impact accounting information. In addition, the safety factor of information infrastructure SI also significantly influences accounting information.

Footnotes

Declaration of Conflicting Interests

The author(s) declared the following potential conflicts of interest with respect to the research,authorship,and/or publication of this article: I certify that I am not affiliated with or involved in any organization or entity with a financial interest (such as honoraria,educational grants,participation in a speakers bureau,membership,employment,consulting,stock ownership,or other equity interests;and expert testimony or patent licensing agreements),or non-financial interests (such as personal relationships or profession,affiliation,knowledge,or belief) in the subject or material discussed in this manuscript.

Funding

The author(s) received no financial support for the research,authorship,and/or publication of this article.

ORCID iD

Nguyen Phu Giang

Data Availability Statement

The data that support the findings of this study are available from the corresponding author,[Nguyen Phu Giang],upon reasonable request.

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