The audit of e-commerce entities : special considerations

Abstract

Purpose: The study aims to analyse any special considerations arising when auditing eCommerce entities. It seeks to evaluate differences between financial auditors and IT auditors in their perceptions of eCommerce audit. This dissertation further aims to analyse other differences relating to eCommerce audit together with the analysis of any further comments obtained. Design: The primary data was obtained by conducting fifteen (15) semi-structured interviews with representatives of ‘Big4’ and medium-tier audit entities. IT (CISA holders) and financial auditors were interviewed in line with the set objectives of this study. In designing the interview schedule previous literature was considered to ensure relevant findings and a valid discussion exercise. Findings: The main findings emanating from the primary data collection were sufficient to cover the stated objectives of the study. The main findings confirmed that eCommerce audit has special considerations which pertain to the eCommerce activity of an entity. Moreover findings also confirmed the differences in perception of eCommerce audits between IT auditors and financial auditors. Other interesting results showed differences between ‘Big4’ entities and medium-tier audit firms. It was also noted that the findings emanating from this research were more closely related to the more recent literature rather than to earlier literature, highlighting the evolving nature of eCommerce audit and how it is perceived. Conclusion: It was thus concluded that eCommerce audit does in fact pose special audit considerations that have to be considered. Moreover we have confirmed and analysed in detail the existence of crucial differences between CISA and non-CISA holders. In line with the last objective of this study we have also analysed other important factors relevant to eCommerce audit, such as the differences that exist between ‘Big4’ and medium-tier audit firms. Value: Given the exponential growth of eCommerce transactions and the possible implications on the external audit, a study is needed to identify the special audit considerations which are more likely to pose special interest in the audit of eCommerce companies. Moreover this study will also serve to highlight differences between IT and Financial auditors and their sometimes converging opinions on key audit components and analyse the reasons for such differences.