MAP Social Sciences (MAPSS) / Volume 3 / Issue 1

REVIEW PAPER

Governance Implications of Applying Internal Auditing Standards to Blockchain-based Decentralized Autonomous Organizations (DAOs)

by Miloš Lončarević ¹ Goran Kozina ²

¹ University of Applied Sciences Burgenland, Eisenstadt, Austria
² University North, Varazdin, Croatia

ABSTRACT

The research paper discusses governance implications, benefits, and challenges of applying internationally recognized internal auditing standards to the newly emerging Decentralized Autonomous Organizations (DAOs) that have quickly gained traction in the past years and are currently totaling market capitalizations of more than USD 20 billion globally. It is analyzed how standards established for traditional centralized organizations are compatible with a decentralized, often anonymous organization that makes decisions democratically based on majority votes while most operations are conducted autonomously subject to pre-defined self-executing smart contracts. After the technological attributes of blockchains, smart contracts, DAOs and other general considerations are determined, each IIA standard is applied separately and results are drawn from a qualitative analysis. The publication contains the major conclusions from a literature analysis followed by a summary of conceptual obstacles to complying with the standards in case of selecting a DAO as an organizational form which could make their overall legality impossible in a context where the implementation of an IA function is mandatory. Additionally, it is summarized how choosing a DAO can contribute and/or challenge compliance with the standards while giving a glimpse into what internal auditing could look like in the future.

Keywords: Blockchain, Decentralized Autonomous Organization, DAO, Governance, Internal Audit, Standards

HOW TO CITE THIS ARTICLE
Lončarević M., Kozina G. (2023). Governance Implications of Applying Internal Auditing Standards to Blockchain-based Decentralized Autonomous Organizations (DAOs), MAP Social Sciences, 3(1), 51-64. doi: https://doi.org/10.53880/2744-2454.2023.3.1.51

MAP Social Sciences

Volume 3 / Issue 1

ISSN: 2744-2454/ © The Authors.
Published by MAP - Multidisciplinary Academic Publishing.

Article Submitted: 10 March 2023
Article Accepted: 29 May 2023
Article Published: 31 May 2023

Correspondence concerning this article should be addressed to the author(s).

DOI: https://doi.org/10.53880/2744-2454.2023.3.1.51

Full Article Download (PDF)

© The Author(s). Open Access Article
Creative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Explore Articles

ORIGINAL RESEARCH PAPER

Forms of Knowledge Transfer in IT Project Management

Rita Stampfl ¹ , Julian Fischer ² , Silke Palkovits-Rauter ³

¹ University of Applied Sciences Burgenland, Eisenstadt, Austria
² University of Applied Sciences Burgenland, Eisenstadt, Austria
³ University of Applied Sciences Burgenland, Eisenstadt, Austria

Published on 19 September 2023
in MAP Social Sciences: Volume 4

ORIGINAL RESEARCH PAPER

Local Political Parties in Austria during the COVID-19 Era: A Comparative Case Analysis

Robert F. J. Pinzolits ¹

¹ University of Applied Sciences Burgenland, Eisenstadt, Austria

Published on 06 September 2023
in MAP Education and Humanities: Volume 4

ORIGINAL RESEARCH PAPER

Gender differences in attitudes toward ethics in digital business. Evidence from Croatia

Ivana Benjak ¹ , Doroteja Mandarić ² , Anica Hunjet ³

¹ University of Applied Sciences Burgenland, Eisenstadt, Austria
² University of Applied Sciences Burgenland, Eisenstadt, Austria
³ University North, Varaždin, Croatia

Published on 05 September 2023
in MAP Social Sciences: Volume 4

REVIEW PAPER

The incorporation of fintechs into the banking sector: The fintech N26 as a case study

Bojana Vukovljak ¹

¹ University of Applied Sciences Burgenland, Eisenstadt, Austria

Published on 25 July 2023
in MAP Social Sciences: Volume 4

ORIGINAL RESEARCH PAPER

Gambling Addiction, Gambling Intention and Financial Wellbeing in Bosnia and Herzegovina

Ivan Sučić ¹ , Ensar Mekić ² Malcolm Duerod ³

¹ International Burch University, Sarajevo, Bosnia and Herzegovina
² International Burch University, Sarajevo, Bosnia and Herzegovina
³ International Burch University, Sarajevo, Bosnia and Herzegovina

Published on 09 July 2023
in MAP Social Sciences: Volume 4

REVIEW PAPER

Održivi razvoj i društveno odgovorno poslovanje u hotelijerstvu

Željko Kukurin ¹

¹ Juraj Dobrila University, Pula, Croatia

Published on 03 July 2023
in MAP Social Sciences: Volume 4

REVIEW PAPER

The Influence of Nationalism and Realism on Shaping of the Political Thought in Russia with Special Emphasis on the Putin Era

Selma Delalić ¹ , Ermin Omeragić ²

¹ International Burch University, Sarajevo, Bosnia and Herzegovina
² International Burch University, Sarajevo, Bosnia and Herzegovina

Published on 16 June 2023
in MAP Social Sciences: Volume 3 / Issue 1

REVIEW PAPER