The Impact of Blockchain Technology Arrangement on the Planning of the Continuous Review Process Exploratory Study on Libyan Audit Offices (2025-2026)

Abstract

This study aimed to identify the impact of utilizing Blockchain Technology on continuous audit planning in Libyan audit firms during the period 2025–2026, in light of the rapid developments in information technology and the digital transformation taking place in the business environment and the accounting and auditing profession. The study was based on the importance of Blockchain Technology as one of the emerging technologies characterized by transparency, transaction traceability, data immutability, and the ability to provide reliable and continuously updated digital records. These characteristics may contribute to improving auditing practices and facilitating the transition from traditional periodic auditing to continuous auditing. The research problem focused on determining the extent to which Blockchain Technology can be utilized by Libyan audit firms and examining how its use may affect continuous audit planning, particularly with regard to audit risk assessment, determining the nature and scope of audit procedures, timing of audit procedures, resource allocation, and the use of continuous data analysis and digital audit evidence. Accordingly, the study sought to assess Libyan auditors’ level of knowledge of Blockchain Technology, identify their perceptions of its potential benefits, determine the major obstacles to its adoption, and examine its impact on the various elements of continuous audit planning. The study adopted the descriptive-analytical approach, supported by an inductive approach in the theoretical component through reviewing relevant Arabic and foreign literature and previous studies addressing Blockchain Technology, accounting, and continuous auditing. For the field component, a questionnaire was used as the main data collection instrument and was administered to auditors working in Libyan audit firms. A five-point Likert scale was used to measure respondents’ perceptions. Appropriate statistical techniques were employed, including frequencies and percentages, arithmetic means and standard deviations, Cronbach’s alpha coefficient, Pearson’s correlation coefficient, simple and multiple regression analysis, and statistical significance tests at the level of (α ≤ 0.05). The study concluded that the utilization of Blockchain Technology can contribute to improving continuous audit planning by providing more timely, traceable, and verifiable data, supporting audit risk assessment, and improving the selection of the nature, scope, and timing of audit procedures. Blockchain Technology may also reduce reliance on certain traditional manual procedures and enhance continuous data analysis. Furthermore, it may enable some audit procedures to become more automated, thereby potentially reducing the effort, cost, and time required to complete the audit process. The study also found that the implementation of Blockchain Technology faces several technological, professional, and regulatory challenges, including limitations in technological infrastructure, scalability issues, privacy concerns, cybersecurity risks, difficulties in integrating Blockchain Technology with accounting information systems and Enterprise Resource Planning (ERP) systems, as well as the need for human resources with the necessary technological skills and expertise. Other challenges include the availability of senior management support and financial resources and the need to develop appropriate legal, regulatory, and professional frameworks governing the use of Blockchain Technology in accounting and auditing. The study further emphasizes that Blockchain Technology does not necessarily eliminate the role of the external auditor; rather, it may reshape the nature of the auditor’s role, shifting the focus from examining historical transactions toward data analysis, continuous monitoring of operations, risk assessment, internal control evaluation, and the identification and verification of exceptions and unusual transactions. Therefore, successful adoption of the technology requires developing auditors’ skills and providing them with appropriate training in emerging digital technologies. In light of these findings, the study recommends that professional and regulatory authorities in Libya develop clear standards and guidelines governing the use of Blockchain Technology in accounting and auditing. It also recommends providing specialized training programs for auditors and accountants, strengthening managerial support and allocating the financial resources required for digital transformation, engaging specialized technical experts, improving the integration of Blockchain Technology with accounting information systems and ERP systems, and developing university curricula to include applications of emerging technologies in accounting and auditing. The study further recommends encouraging additional empirical research on the effects of Blockchain Technology on audit quality, audit cost, audit timeliness, and audit risk management , as well as conducting comparative studies between Libya and other Arab countries.