AUDT Token to Govern World’s First Gamified Continuous Assurance and Real Time Financial Reporting Platform.

Applying traditional audit methodologies and processes to digital assets is like recording a synthesizer through an amplifier using an analogue microphone. Simply put, it lacks fidelity. Where digital assets are concerned, Auditchain proposes expert network enterprise external validation in real time by a network of CPAs and Chartered Accountants governed by an incentive system using the AUDT Token. Financial statements are also reported in real time.

Traditional assurance involves one auditor and one enterprise. They are paid by wire or by check. An opinion, signed in wet ink, is issued by the auditor on financial condition as of the end of the period under examination. Auditchain proposes that attestation levels be recorded by each of the several validators on every block, not once per year.

It should be noted that it is not within the scope of a comprehensive audit engagement to specifically detect fraud.

Systemic risk becomes inevitable as the result of the ability to conditionalize or enhance financial performance, a known practice in the annals of managing growth expectations. Is this condition a contributing factor to the occurrence of a financial crisis? If wholesale manipulation of financial performance can persist, we may continue to see periodic systemic financial damage followed by central bank aided recovery. Can an improved audit methodology prevent severe economic volatility? Will digital assets lead the way toward a new assurance methodology?

Consortium Based Utility and Staking

Auditchain is the founding member of the DCARPE Alliance Association, an accounting, audit, financial reporting and blockchain consortium which is leading the development of the DCARPE Assurance and Disclosure Protocol. Enterprise external validation is performed by a network of enterprise external validators; as opposed to a single auditor. Enterprise external validators are CPAs and Chartered Accountants who are members in the assurance category of the Alliance. Each validator must stake AUDT Tokens. They externally validate three categories of assurance; (i) system and control functional compliance, (ii) financial data structure and accuracy and (iii) disclosure control compliance with GAAP and/or IFRS. They are paid with the AUDT Token for the external validation.

The AUDT Token is consumed through staking by enterprises, CPAs, Chartered Accountants, providers of enterprise software and other service providers as well as subscribers to detailed audit analytics and real time financial statement line item detail through the DCARPE Explorer.

Robust staking fosters an incentive to provide uninterrupted service and reduce the cost of services on the network as well as enforces a fair and balanced assurance process. It also consumes a significant amount of AUDT Tokens and removes them from circulation. Enterprises must stake a minimum of 4 months’ worth of compliance/software/utility costs which are determined at the conclusion of the scope of implementation. Their stake is decremented monthly and topped up prior to the end of the staking period.

The CPAs and Chartered Accountants are paid by the annual inflation emission of the network in addition to the AUDT Token payments made by the enterprise. Reasonable or adverse attestation is a premium assurance level and results in payment of AUDT to the external validators from the enterprise staked account. A Nash gamified external validation economy promotes and enforces a sound monetary assurance economy using the AUDT Token.

Gamified Enterprise External Validation

CPAs and Chartered Accountants may “witness” a data set in a block. This means they have seen the data but are not making an attestation either way. If they do this for a certain number of consecutive blocks without making a reasonable or adverse attestation when it’s appropriate to do so (selfish mining) then a portion of their stake is decremented and burned. This promotes a higher integrity of attestation in each of the three categories of assurance and also permanently removes AUDT Tokens from circulation.

The earliest CPAs and Chartered Accountants who adopt will earn the highest percentage of the total inflation. As the network is populated by validators, the percentage of the reward per validator decreases and forces a higher ratio of premium attestation, thus calling AUDT from enterprise staked accounts in order for validators to earn. This causes a majority of the enterprise external validation to be premium (reasonable/adverse).

High Utilization Ratio

The more enterprises that adopt, the higher the consumption rate of AUDT Tokens must occur. Also, the more external validators that join and perform audit work, the higher the utilization rate.

AUDT is also staked by enterprise software providers to incentivize 24/7 up time and tighter code and controls of the components consumed by enterprises. Enterprise software providers are paid AUDT by enterprises who consume the software on the network.

AUDT is also staked and consumed by subscribers to the DCARPE Explorer who subscribe to a variety of access to detailed digital asset and enterprise financial statement and audit analytics data on a per block basis. Subscribers will be able to make micro payments to see on the spot detail or purchase the rights to detail on any number of blocks going backward in time or forward. In addition, third party service subscriptions consumed through the DCARPE Explorer will enable the creation of dynamically updating actionable research reports on selected digital assets for investors as well as thesis based analytics for enterprise forecasting. Third party service providers must also stake AUDT to provide services to the DCARPE Assurance and Disclosure Protocol.

The AUDT Token will govern the new decentralized enterprise world. It’s what drives assurance of the modern enterprise from initial certification, early detection and remediation to financial and audit analytics disclosure in real time with the highest levels of integrity through enterprise external validation.

“Proof of HODL” Airdrop

In addition to high consumption and utilization rates, Auditchain is launching a “Proof of HODL” Airdrop. It is designed to reward adopters of the DCARPE Assurance and Disclosure Platform with additional AUDT Tokens ONLY if it is proven that the user held or staked the AUDT Token to facilitate its utility in the DCARPE Assurance and Disclosure Platform.

The “Proof of HODL” Airdrop will feature a drop of up to a total of 45,000,000 AUDT Tokens in four (4) separate airdrops to early adopters over the course of the one-year period following a notice given to the community.

MVP

Auditchain has developed an MVP of the DCARPE Assurance and Disclosure Platform. CLICK HERE to watch a demo video of the platform.

About Auditchain:

Auditchain is the founding member of the DCARPE Alliance Association and is leading the development of the world’s first Decentralized Continuous Audit & Reporting Protocol Ecosystem for digital asset and enterprise assurance and disclosure. Auditchain is developing a layer 2 public blockchain ecosystem populated with CPAs and Chartered Accountants who externally validate enterprise system and controls and financial condition on a continuous basis and in near real time. The DCARPE Explorer is a subscription based public block explorer that renders financial statements and audit analytics in real time to subscribers.

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