With reference to the information given in Para 7, provide some illustrative steps for performing audit of the blockchain-based system.

(a) Following are the illustrative steps for performing audit of above said block chain: (a) Obtain a comprehensive understanding of the blockchain-based pilot program, including its objectives, scope, and key processes involved. (b) Review the partnership agreements, contracts, and legal documentation governing the relationship between the Indian bank and Bouyanc Bank. (c) Identify the specific blockchain technology used, its functionalities, and the underlying mart contracts. (d) Assess Internal Controls: Review policies and procedures related to the on-chain Nostro accounts, settlement processes, and money transfer mechanisms.Assess the governance framework, risk management practices, and compliance procedures established by the Indian bank and Bouyanc Bank. (e) Review Security Measures: Assess encryption methods, cryptographic key management, and secure transmission protocols used for data protection.Review measures taken to prevent unauthorized access, cyber threats, and potential vulnerabilities in the blockchain network. (f) Test Transaction Validity and Accuracy: Validate that transactions are recorded and settled accurately on the blockchain, ensuring adherence to relevant regulations and contractual obligations.Perform reconciliations between on-chain Nostro accounts and the corresponding accounts held at Bouyanc Bank to confirm the accuracy of balances and transactions. (g) Evaluate Compliance and Regulatory Requirements: Review documentation and procedures related to customer due diligence, transaction monitoring, and reporting obligations.Ensure that the pilot program adheres to industry-specific standards and best practices. (h) Assess Business Continuity and Disaster Recovery: Evaluate the adequacy of backup and recovery procedures, redundancy measures, and failover mechanisms to ensure uninterrupted operations.Test the effectiveness of these plans by conducting simulations or examining historical incidents and response procedures. (i) Report Findings and Recommendations: Provide recommendations for improving internal controls, security measures, compliance procedures, and overall efficiency and effectiveness of the pilot program.Communicate the audit results to the relevant stakeholders, highlighting areas of concern and suggesting remedial actions.