Application of Internet of Things and Blockchain Technologies to Improve Accounting Information Quality

Following the rapid development and the maturity of blockchain (BC) and the Internet of Things (IoT) technologies, this paper proposes two applications of a BC-IoT transaction model in the accounting field. The BC-IoT transaction model is capable of automatically collecting, uploading, and recording all relevant data in the enterprise transaction process under the premise of satisfying certain assumptions. This model does not require manual intervention at any point in the process; no data recorded on the distributed ledgers can be tampered with or revoked. The data collected using this model can be used as information on events, providing data support for the events approach to basic accounting theory. This practice responds to the important insight of sorter, who proposes the provision of accounting information in real time and on demand to substantially improve the usefulness of accounting information. This paper also identifies that BC technology can significantly improve the relevance, faithful representation, timeliness, comparability, and other aspects of accounting information quality.