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A multinational uses blockchain to record its supply-chain transactions and stores customer KYC data on the same private permissioned chain. From a financial-reporting perspective, which is the MOST defensible claim?
ABlockchain renders Ind AS 24 related-party disclosures unnecessary as transactions are visible to all parties
BBlockchain provides an immutable, transparent audit trail of transactions and reduces reconciliation but does not displace the auditor's professional judgement on existence, valuation and disclosure
CBlockchain automatically converts data into Ind AS-compliant disclosures because of its decentralised nature
DBlockchain eliminates the need for an external audit because each block is cryptographically verified
Answer & Solution
Correct answer: B. Blockchain provides an immutable, transparent audit trail of transactions and reduces reconciliation but does not displace the auditor's professional judgement on existence, valuation and disclosure
Blockchain provides immutability, transparency, integrity and a reliable audit trail, which streamlines audits and reduces reconciliation. It does NOT eliminate audit (B is precisely the chapter's nuance); cryptographic verification only proves a record has not been altered post-entry — it cannot validate the underlying economic substance, fair value or disclosure obligations under Ind AS.
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