Garvit Pvt. Ltd. is an e-commerce company that has recently started using blockchain technology to record customer payments made through cryptocurrency and to execute smart contracts with suppliers. The system is connect

Blockchain is a digital ledger technology that is used to store data in a secure and decentralised manner. Once data is recorded on the blockchain, it cannot be altered or deleted without the consensus of the network participants, which ensures that the data is trustworthy and tamper-proof. However, there are certain common risks associated with the blockchain technology. The inability to reverse transactions and to access data without the required keys make the system secure, but also mean that organizations need specific protocols and management processes to ensure that they are not locked out and have clear contingency plans. Operating through network nodes could also expose the organization to cyber-attacks and data hacks. Auditors should also ensure that the organization has the necessary data management processes which comply with regulations. The regulatory landscape is still evolving for blockchain, so audit teams should check that compliance managers are following developments constantly and adapting processes accordingly. The technology also carries Operational risks such as dependence on technology infrastructure and network availability, System failures, software bugs, or implementation errors. The reliance on blockchain service providers, exchanges, wallet providers, or cloud infrastructure and service disruptions or security failures at third parties may impact operations.