E-Commerce and Control Environment

E-Commerce and Control Environment

E-commerce strategy may affect the reliability of financial record of the organization, and also have security implication for the organization transaction processing. Therefore auditor understanding of impact of E-commerce over control environment is essential. Auditor is required to understand the following in the context of control environment.

1.    Top Management involvement

How top management is involved in the E-commerce strategy making and its role in overseeing the strategy implementation. Top management effective involvement will improve the control environment.

2.    E-Commerce impact on business activities

Auditor should evaluate the E-commerce impacts on the existing business activities. Auditor shall also consider, whether E-commerce is expanding the existing market, or bring the efficiency in the existing market.

3.    E-commerce impact on Financial Requirement

As E-commerce may affect the revenue structure and bring new earning opportunities for the organization. Therefore these activities will change the financial requirement of the organization.

4.    Management understand opportunities & Risks

E-commerce will bring new opportunities and risk for the organization. It is important that management do realized the new opportunities and risk dynamics and these dynamics are properly documented.

5.    Management resolve for best practices

Auditor should evaluate the management commitment and resolve toward best practices in the E-commerce. Best practices will improve the control environment within organization.