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Enterprise internal audit data encryption based on blockchain technology.

Lixia Gao1

  • 1Taiyuan University, Taiyuan, China.

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|January 10, 2025
PubMed
Summary

The BlockCryptoAudit framework enhances internal audit security using blockchain and homomorphic encryption. This innovative approach ensures data privacy, transparency, and integrity for improved risk mitigation and audit quality.

Area of Science:

  • Computer Science
  • Information Security
  • Auditing

Background:

  • Internal auditing faces challenges from increasing risks and illegal activities.
  • Existing solutions lack robust encryption, necessitating enhanced security measures.
  • Blockchain offers transparency and immutability, but requires integration with advanced encryption.

Purpose of the Study:

  • To propose a novel framework, BlockCryptoAudit, for secure and transparent internal audit processes.
  • To enhance internal audit security by integrating blockchain technology with cryptographic encryption methods.
  • To address the limitations of current blockchain applications in internal auditing.

Main Methods:

  • Integration of an additive homomorphic Paillier encryption scheme with blockchain.

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  • Utilization of Hyperledger Fabric for a decentralized and tamper-resistant audit trail.
  • Implementation of role-based access controls via smart contracts for data security.

    • Main Results:

    • BlockCryptoAudit ensures computations on encrypted data, preserving privacy.
    • The framework provides a secure, tamper-resident, and transparent audit trail.
    • Achieved 98% risk mitigation and 99% audit quality with minimal security overhead.

    Conclusions:

    • BlockCryptoAudit significantly improves internal audit processes through enhanced security and data integrity.
    • The framework offers a robust solution for protecting sensitive audit data.
    • BlockCryptoAudit outperforms existing models in risk mitigation and audit quality.