Blockchain technology appears to have unique characteristics such as inherent trust, immutability, transparency, and tighter security that might facilitate the audit process. Using a survey of AICPA members, we examine responses to the evaluation of audit evidence related to management assertions in a blockchain-enabled environment. We posit three possible effects pertaining to reliance on audit evidence in blockchain-enabled environments: (1) Goldilocks Effect (no automation bias) or the ideal scenario where auditors exhibit “just right” levels of professional skepticism and due care resulting in an optimal level of auditing; (2) Halo Effect or positive automation bias, which potentially results in over-reliance on evidence and, in turn, underauditing and; (3) Hype Effect or negative automation bias, which potentially results in under-reliance on evidence and, in turn, overauditing. Our results suggest that respondents to our survey are predominantly influenced by the Halo Effect, indicating a propensity for positive automation bias across management assertions.

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