E-commerce and Auditing Essay Example | Topics and Well Written Essays - 2500 words

E-commerce and Auditing - Essay ExampleThese atomic number 18It is not viable for scrutinizeors to take leave of work and go back to school to learn the mechanisms needed to serve the new auditing scope. To deal with this aspect of the transformation on-the-job training is the strategy employed by the audit executives. The authors recorded that ,Some audit executives are using external contractors to off load some of the regular work. Freed up internal resources are then be used to get in-house auditors trained in the use of technology. (pg 91). Nikoloyuk et al further related that Audit executives use the strategy of increasing audit teams with external specialists. These teams are used to train internal resource to become internal specialist.Changes Like many other businesses auditing has had to change and modify its practices to best adopt to the growth of technology. Businesses nonplus moved away from the traditional methods and are becoming more and more technologically adva nced. If auditing is to remain alive it too will have to adopt to these changes. more so, as their main clients are in fact businesses. Kumar in his work The Technological Auditor, noted that, Accountants and Auditors are not always on the cutting process of technology. Auditing by character is not a very transparent job. The process of the job relied on a lot of paper work . This goes against the very nature of E-commerce where the paper work is almost non-existent. Auditing stands a chance of becoming obsolete if adaptations are not made. Companies were disgruntled by the former auditing process as they 4viewed the as being too expensive and burdensome. In response to these and other concerns Kumar relates that the US Public Company Accounting Oversight board (PLAOB) responded to these concerns by boost auditors to become more consistent and transparent in the way they conducted audits. This discontent among businesses and the realization that e-commerce was always moving away from the traditional were indicators that change was on the aspect for the auditing profession. These changes would includemore transparency.The maximizing of special auditing skills on a global basis.Rationalization of the controls.Increased focus on value-added services by auditors.Formerly businesses would account the auditing of their firm based on their point-in-time system where they would carry out internal assessments to identify high risk of infection areas of the business. This system soon become redundant as companies sought to comply to the Sarbanes-Oxley. The regulation stipulated that firms would now have to make their financial statements readily available for auditing. (Kumar pg1).Audit Risk The switch to automated auditing comes with added risk and challenges. The risk that an e-commerce business faces are many