Abstract:

 Despite growing attention to blockchain adoption in accounting and banking, limited empirical evidence explains whether banks’ capability to verify the integrity, authenticity, consistency and traceability of blockchain-related data is associated with reliable financial reporting and effective internal auditing, particularly in Jordanian banks. This study examines the relationships between Blockchain Data Verification Capability (BDVC), Financial Reporting Reliability (FRR) and Internal Audit Effectiveness (IAE), shifting attention from blockchain adoption to verification-centered organizational capability. Using a quantitative crosssectional survey, 320 usable responses from banking professionals were analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. The measurement model demonstrated strong indicator reliability, internal consistency, convergent validity and discriminant validity. BDVC was positively and statistically significantly associated with FRR (β = 0.677, p < 0.001) and IAE (β = 0.654, p < 0.001), supporting both hypotheses. BDVC explained 45.8% of FRR variance and 42.8% of IAE variance, with Q²predict values of 0.454 and 0.424, respectively. The findings underscore the organizational value of blockchain data verification capability in Jordanian banking.