The Integrating blockchain technology in financial auditing: A review of transparency, audit efficiency, and skill gap—a case study of Tanzania Breweries Limited

Martha Edward Makatha; Modest Paul Assenga

doi:10.51867/scimundi.5.2.38

Authors

Martha Edward Makatha
marthamakatha1@gmail.com
Tanzania Institute of Accountancy, Tanzania https://orcid.org/0009-0009-6040-2873
Modest Paul Assenga Tanzania Institute of Accountancy, Tanzania https://orcid.org/0000-0002-5516-7508

Keywords:

Audit Practices, Blockchain Technology, Efficiency, Financial Audits, Transparency, Tanzania Breweries Limited

Abstract

This research investigates the implications of blockchain technology for financial audit at Tanzania Breweries Limited (TBL). With dramatic movements towards digitalization and technological advancements, there has been increased concern about data security, credit and financial information, and the need for cybersecurity, as well as for efficiency and integrity in auditing practices. Following this shift in the financial and accounting sector, blockchain presents an opportunity to enhance the transparency, efficiency, and integrity of data in auditing practice, thereby promoting investor confidence and ensuring the sustainability of the business organization. Researchers used purposive sampling to arrive at a sample of 150 respondents selected from a total population of 1231 employees working at TBL. Data was collected by questionnaires and analyzed through descriptive analysis with the aid of SPSS. Using a quantitative research methods approach, this study assesses the effect of blockchain on audit efficiency through enhanced transparency and improved efficacy and highlights a skill gap for its effectiveness. This study was based on the Technological Acceptance Model and the Diffusion of Innovations Theory. Findings reveal a statistically significant relationship between blockchain adoption and audit efficiency. However, most auditors in developing nations face a critical skills gap that hinders the full potential of blockchain audit. The study concludes that while blockchain holds transformative potential, its successful implementation requires robust training, governance, a sound regulatory framework, and a strategic partnership with leading fintech companies.

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Author Biography

Martha Edward Makatha, Tanzania Institute of Accountancy, Tanzania

Martha Edward Makatha was born and raised in Tanzania, where she developed a strong interest in Accounts, Finance, Mathematics, and Economics. This passion guided her journey to the Certificate of Secondary Education in 2004 and Advanced Secondary Education in 2011, where she specialized in Science at O level and EGM (Economics, Geography, and Mathematics) at A level, respectively. In addition to that, she successfully completed her first Bachelor’s degree in 2014 and qualified with a Bachelor’s degree in Accounts and Finance from Sokoine University, followed by passing the professional NBAA exam, which made her recognized as a Certified Public Accountant (CPA (T)) in 2017. Moreover, Martha successfully completed her second degree and qualified for a Master’s in Business Administration in Corporate Management (MBA-CM) from Mzumbe University in 2020, and after reasonable working experience and professional hours, she was upgraded to Associate Certified Public Accountant in Public Practice (ACPA PP) in 2022.

From 2015, soon after graduation, Martha began her career as a Cooperative Officer, where she was responsible for advising cooperatives about best business practices and overseeing the entire operation of 580 cooperative societies in Njombe Region for the well-being of the Njombe community. In this role, she managed to lead cooperatives to keep financial records, prepare financial statements, design cooperative strategic plans and budgets, and carry out business analysis. Moreover, as Cooperative Officer, she was responsible for cooperative supervision and promotion, as well as organizing cooperative consortiums and training on financial management, customer care, credit appraisal, and other issues important for cooperative development.

From 2015 to 2020, while working as a Cooperative Officer, she managed to hold 35 trainings for cooperative board members in Njombe, Dodoma, and Tanga regions, cooperated with MUVI, MIVARAF, and DSK projects to provide 10 train-the-trainer sessions to cooperative managers from 45 cooperatives under SCULT, conducted research titled "Factors for Increased Non-Performing Loans in Cooperatives," which was used as the basis for her master’s degree, led the establishment of 7 youth cooperatives at Wang’ing’ombe District, 4 women cooperatives at Njombe District, and one irrigation cooperative.

Moreover, from 2021 to 2023, she was transferred to COASCO, where she was acting as Regional Cooperative Auditor (RCA) for Iringa and Njombe Regions. In this new position, she managed to plan and lead her subordinates to carry out audit assignments for 1,274 cooperative societies located in Njombe and Iringa regions from 2021 to 2023. Apart from auditing, she attended annual general meetings to read and interpret audit reports for 320 cooperatives and capacitated her subordinates to attend and present audit reports for the rest of the cooperatives. Also, she led training on how to reduce audit quarrels, how to respond to audit findings, and how to prepare financial statements as per international standards of accounts. During this period, she capacitated her staff to carry out normal audit assignments and forensic audits in both cooperatives and other public organizations as recommended by her supervisor. On the administrative part as Regional Cooperative Officer, she managed to ensure order and ethical behavior as a civil servant working in the field of consultancy as accountant and auditor among her staff and herself. She managed to prepare various reports, hold meetings, and resolve employee grievances as a way of enhancing a peaceful and harmonious working environment.

After a number of years, she gained strong experience in the field of accounting, leadership, and auditing through daily interaction with grassroots society (Cooperative Societies), policy makers in the consortium and Cooperative Federation at national level, various leadership international programs attended like Young Africa Leaders Initiative (Nairobi, Kenya), Community Based Microfinance (at Wise Credit Union, Ethiopia), and International Program in Rural Cooperatives (at India). In 2016, 2017, and 2019, she shifted to an academic institution to transform and transmit her experience to students at Tanzania Institute of Accountancy (TIA), a government institute established to prepare professional accountants who can work in various public and private organizations in the nation.

Therefore, since 2024, Martha has been working with TIA as a lecturer, where she leads students to build their careers in the area of Accounting, Auditing, and Business Management. She is passionate about sharing her skills, knowledge, and work experience with as many students as possible in order to prepare them to become potential accountants and auditors who can contribute to the economic development of Tanzania and the world community as a whole.

Dimensions

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