## 2 Background and Related Works
### Impact of Blockchain on Accounting
Traditional accounting systems rely heavily on centralised authority and are susceptible to the risk of management override--a significant existing concern in accounting fraud. The author of [16] concludes that DLT ensures that transactions are not unilaterally recorded or altered without consensus, thereby offering structural resistance to fraudulent activities. The same study also states that blockchain-based accounting systems could enable decentralised consensus mechanisms, which may act as a barrier against the manipulation of financial data. The role of blockchain in accounting is also viewed through the lens of it being a foundational technology rather than a disruptive one, with the potential to fundamentally transform economic and social systems [26]. Blockchain's decentralised and immutable ledger offers a reliable framework for transparent and reliable transactions and is visible to all network participants, which is key to deterring potential manipulative actions [26; 33]. Moreover, blockchain's attribute of immutability can significantly aid in fraud detection since once data are recorded on the blockchain, the data cannot be altered or deleted, thereby creating a verifiable and permanent record of transactions [33]. [PERSON] [34] offers more relevant insights into the transformative role that blockchain can play in modernising Accounting Information Systems (AISs). The work emphasises the importance of the integration of blockchain technology into existing accounting frameworks to enable improvements in the auditing process, making it more efficient and less prone to errors. The same study states that the inherent characteristics of DLT, such as the immutability of records and transparency of transactions, make it an excellent tool for building robust accounting information systems, aligning with the core requirements of reliable financial reporting and fraud prevention. By ensuring that financial entries cannot be tampered with post-confirmation, blockchain creates an environment where fraud is not only difficult to commit but also easier to detect [34]. One of the revolutionary aspects of blockchain in AISs, as highlighted in [34], is the potential for real-time auditing. This can ensure that anomalies are quickly identified and addressed, thereby maintaining the system's integrity. [PERSON], [PERSON] et al. [23] explore the implications of blockchain for auditing and accounting within the context of the emerging digital economy by evaluating how blockchain can strengthen the trustworthiness of financial statements and reduce the occurrence of accounting fraud. The theoretical insights in [23] underscore the transformative potential of blockchain in accounting and auditing, advocating for a future where financial reporting is more secure, transparent, and efficient. The findings in [23] provide a tangible model for the application of blockchain in combating accounting fraud. The research is predicated on the following:  
* A permanent and unalterable record of all transactions provided by the blockchain ledger that safeguards against fraudulent alterations [23];
* Decentralisation, eliminating the potential for a single point of failure or control, which is often exploited in a fraudulent scheme [23];
* Blockchain transactions being transparent and verifiable by any allowed participant in the network, validating the accuracy of financial information [23];
* Blockchain-based smart contracts being able to automate and enforce compliance with accounting standards and policies [23];
* The real-time and comprehensive nature of blockchain records being able to streamline the auditing process, making it more efficient and less susceptible to human error or intentional oversight [23]. However, blockchain's advantages in fraud prevention are balanced by challenges related to scalability, energy consumption, regulatory uncertainty, and the permanence of its records [33].