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Auditchain
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For Developers of Control Logic
The "Lego Building Blocks" of Accounting, Reporting, Audit and Analysis - Moving the Institution of Accountancy Toward Automation

Getting Started

Plain English or a link to a control is all that is required to develop a control. The curation UI provides a few constraints to keep users on the right track based on the type of control a user is developing. A drop down list of default control types is provided which then allows the user specify the attributes of the selected control type. Once the user has selected the control type and its attributes, the user will enter other URIs to associate other controls with the new control. The user enters the description of the control and also enters its title.
Every accountant knows the accounting equation. Equity=Assets+Liabilities. This simple logic is the over arching control that governs other controls.
Upon submission, Pacioli begins processing the output of the control in the form an XML file containing all of the attributes of the control with a payload of the other URIs to other XML files that the control refers to in order to achieve the functional objective of the newly curated control. The Auditchain Virtual Machine accepts the submission process along with all of the attributes of the new control using the SHA-256 hashing algorithm provided that the logic complies with the other controls AND the accounting equation.

External Validation

The newly curated control is then submitted to the cohort of external validators running the AVM client; which we lovingly call "Pacioli" for validation under the IASE 3402 engagement standard. The control is processed by the external validators to verify that the control (i) works properly, (ii) does not conflict with or break other controls and (iii) complies with specified logical and functional objectives.
When consensus of the cohort is reached that the control meets the conditions of the specified objectives, a validation is outputted and recorded by the EVC. The EVC triggers the settlement in AUDT and also and triggers the minting of a non-fungible token to the address of the curator.

Non-Fungible Token

The NFT represents ownership of the control and points to an immutable URI on IPFS. The payload of the file linked by the URI contains the control and all other relative URIs as well as metadata that states; the creator's name and Ethereum address, name of each of the external validators and their Ethereum address, the EVC cohort address and the Merkle root which is the basis of the Proof of Assurance, "PoA".

Knowledge Graphs

The PoA is a critical piece of a knowledge graph populated during the control curation process. The control curation process populates a knowledge graph that associates all of the attributes of the control and includes the attributes in the metadata section of the control. As the controls are consumed by other actors in the AVM, the knowledge graphs become extremely useful. Actors can create additional controls (subgraphs) that become part of other knowledge graphs created by them that play a critical role in communicating accounting, audit, financial reporting and analysis logic and information in a machine-readable way.
The knowledge graph is also critical for reporting entities and auditors who are involved with financial statement audits in Europe which must include machine-readable data and logic as well as human readable rendering of financial statements under CEAOB guidelines.
Congratulations! You just performed computational professional services that populated the AVM with a new consumable control which you now own! Every time that new control used, you and each of the members of your EVC cohort who attested to the control will receive AUDT as a royalty.
Do you REALLY want to perform manual accounting work for 10-12 hours a day for the rest of your career? Or do you want to come with us, get a life and change the world?

Last modified 4mo ago