Risks in Conducting E-Business
SUMMARY
In recent years, the development of technology and the Internet has had an important impact on every aspect of life. The application of automatic and electronic system has becomes essential in every activity, particularly in business. E-business now has an important role in the success of enterprises. It reduces expenditure, time and labor for management information systems, yet provides higher quality of financial information to managers.
On the other hand, conducting e-business can create a non-secure environment that may influence the quality of financial information. Both accidents and intentional breaches are potential security risks arising from e-business. Accidents cannot be completely eliminated but could be reduced by an efficient internal control, whilst intentional frauds represent another threat.
In order to limit or eliminate these security risks in conducting e-business, each enterprise should have a plan to organize an efficient internal control system and implement/purchase a security service to protect confidential information. Depending on their financial status, and the cost for recommended activities, the enterprise should determine whether conducting e-business is worthwhile. INTRODUCTION
Background
Conducting e-business is popular and benefits all enterprises, particularly for financial management. However it also creates several risks, particularly security risks to the quality of a business’s financial information. These security risks should be identified, assessed and studied to reduced adverse impacts on business activities.
Aims
- To analyze the benefits of conducting e-business;
- To analyze the security risk of conducting e-business;
- To give some solutions to limit or eliminate analyzed risks.
Scope
The report will focus on the impact of conducting e-business on financial management and financial information security.
REPORT BODY
1. Electronic business (e-business)
E-business refers to the
In recent years, the development of technology and the Internet has had an important impact on every aspect of life. The application of automatic and electronic system has becomes essential in every activity, particularly in business. E-business now has an important role in the success of enterprises. It reduces expenditure, time and labor for management information systems, yet provides higher quality of financial information to managers.
On the other hand, conducting e-business can create a non-secure environment that may influence the quality of financial information. Both accidents and intentional breaches are potential security risks arising from e-business. Accidents cannot be completely eliminated but could be reduced by an efficient internal control, whilst intentional frauds represent another threat.
In order to limit or eliminate these security risks in conducting e-business, each enterprise should have a plan to organize an efficient internal control system and implement/purchase a security service to protect confidential information. Depending on their financial status, and the cost for recommended activities, the enterprise should determine whether conducting e-business is worthwhile. INTRODUCTION
Background
Conducting e-business is popular and benefits all enterprises, particularly for financial management. However it also creates several risks, particularly security risks to the quality of a business’s financial information. These security risks should be identified, assessed and studied to reduced adverse impacts on business activities.
Aims
- To analyze the benefits of conducting e-business;
- To analyze the security risk of conducting e-business;
- To give some solutions to limit or eliminate analyzed risks.
Scope
The report will focus on the impact of conducting e-business on financial management and financial information security.
REPORT BODY
1. Electronic business (e-business)
E-business refers to the
References: Gelinas Jr, Ulric J, Dull, Richard B, Wheeler, Patrick R 2012, Accounting Information Systems, international (9th) edn, South-Western Cengage Learning, Mason. Auditing and Assurance Standards Board, June 2011, Auditing Standard ASA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, http://www.comlaw.gov.au/Details/F2011C00629.