Applied Mathematics and Nonlinear Sciences
Journal license

Journal

Applied Mathematics and Nonlinear Sciences


Volume
& Issue

Volume 9, Issue 1


Published
on

October 9, 2024


Pages


DOI

Article

Cost-Benefit Modeling of Smart Contracts Applied to the Accounting and Auditing Field

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Authors

Wei Zheng Affiliation:
School of Audit, Nanjing Audit University Jinshen College, Nanjing, Jiangsu, 210023, China.


Abstract

Blockchain technology is increasingly pervasive in social production and life, and its influence on the accounting and auditing industry is undeniable. The article extensively researches blockchain technology and smart contracts, and it constructs a blockchain-based cloud data auditing model. Combining it with the evolutionary game model completes the construction of the blockchain-based cloud data auditing system. The running cost of the auditing model is analyzed in terms of communication and computation overhead, smart contract cost, time cost, etc., and how it affects the strategies of auditing clients and auditors is studied from the aspects of cost and benefit, respectively. In this paper, the audit model’s average communication overhead and computation overhead are 9.86 KB and 0.82 seconds, respectively. The cost of the smart contract model is relatively low and shows a steady trend. The average query time of this paper’s auditing model is 0.78ms, and none of the validation times on the validator exceeds 5ms, while the average validation times on the blockchain and cloud servers are 11.01ms and 534.35ms, respectively. The auditing client and the auditor tend to adopt the blockchain technology strategy when the cost reduces, or the benefit increases, with a probability of adoption approaching 1 after numerous games.


Keywords

Blockchain, Smart contract, Accounting audit, Cost-effectiveness, 68P30


Citation

Zheng, W. (2024). Cost-benefit modeling of smart contracts applied to the accounting and auditing field. Applied Mathematics and Nonlinear Sciences, 9(1). https://doi.org/10.2478/amns-2024-2899

Published by: Engineering Journals

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