Sarcouncil Journal of Economics and Business Management

Abstract: Audit trail integrity continues to be relevant to the quality of financial reporting in the United States. The conventional auditing systems are usually based on centralized systems that are prone to errors affecting the reliability and transparency of the data. The study examines how blockchain technology enhances audit trail integrity in terms of immutability, automation, and real-time transaction verification. The study intends to assess the effect of blockchain on trust, transparency, and accountability in the U.S. auditing ecosystem. Empirical applications and industry practices are evaluated based on the use of a qualitative literature review and a case study approach. Two case studies are analyzed, including the 2022 report on the Blockchain Assurance Pilot of Deloitte, which has shown that audit efficiency and compliance could be improved, and the case study of the 2019 failure in integrating blockchain by KPMG, which has shown regulatory and technological constraints. The results indicate that blockchain can greatly improve auditing reliability and transparency if it is accompanied by standardized frameworks, auditor training, and technological scalability. Nevertheless, despite the current issues, the incorporation of blockchain in American auditing can shift financial assurance into a data-driven and continuous process. The paper concludes that achieving the full potential of blockchain in the field of financial audits requires the development of regulations, professional competence, and coordinated governance.