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International Auditing.

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Enrolment No.: 00054178 Tutor: Marlene Davies Tutorial group: Group 1 With the arrival of 21st century, there is a rapid growth in the development of using Internet as a marketplace between consumers and business and business and business. It becomes a core machine for commercial transaction. For thriving or even survival, we, as a customers or enterprises, ought to closely grip with the prompt development of this innovated new business environment. There are many people across the world to the Internet, especially business communities which regard the changes brought about by Internet as an opportunity. We also have been benefited by the changes. It is because there is a potential for us to have wide, flexible Internet shopping all over the world. We can now break the restriction of traditional market of buying and selling goods and services in local market. In other words, Internet opens a global market for both customer and business as long as breaking the limitation by the geographic area they are living. Therefore, giving business ability attracts or undertakes business with new customers and clients around the world outside traditional market. Apart from the above reason, there are many other reasons 'why companies adopt Internet?' Firstly, an increase in the pace of doing business is provided. Secondly, it can be acted as a powerful research tool of getting business information, news, academic information, market intelligence and so on from all over the world. Thirdly, the increased in competitive pressure derived from market sectors environment, companies without web are going to get an immediate lag and disadvantages. Finally, there is a relatively lower infrastructure cost incurred by operating via web site rather than a brick-and mortar shop or office. Those reasons related to the adoption of Internet of business mentioned above are the success of the Internet that some companies have been created to undertake trade solely through Internet. ...read more.


Finally, determine whether back-up files are periodically verified against the original to confirm that the back up has worked correctly and where back-up files are stored off-site determine when the security of the site was last reviewed and what action was taken to correct any deficiencies. PC control: The PC controls, both the existing strategies and acquisition procedure are necessary to assessed by auditors. Then auditors should ensure whether the existences of the standards for end user and/or PC applications development are in adequate scope. Guidance available to staff who manage and use PCs should be examined. Furthermore, identify management responsibilities for each PC system and determine risk of unauthorized physical access of PCs are those necessary actions should be taken by auditors. For reviewing the physical access of PCs, test check log-on procedure and the software to control log-on procedures ought to be under consideration. Review the purposes for which the PCs are used and the degree of vulnerability to the effects of interruptions to service and the appropriateness of locations of PCs and the general levels of threat and protection. Network controls: For network controls, firstly, auditors is necessary to obtain a copy of the organization's IS/IT strategy and a network diagram to ensure it whether it addresses network investment and the design promotes an appropriate level of security and resilience for the organization. Next step is to find out the network's responsible person whether he has adequate and appropriate training, then to examine the documentation for network management system and check whether it has been used and by whom. Moreover, see whether the instructions documented about the general usage of the network are up-to-date in user guide. Auditors should identify controls in place to identify unauthorized network connection to ensure that adequate controls are in place to stop unauthorized examination and amendment of networking protocols and settings. Furthermore, auditors ought to ask what policy the organization has on the use of encryption for the transmission of confidential data. ...read more.


This is less tangible than the other recommendations here, but no less important. A system administrator who views the web server as 'just another system to back up' will not pay as much heed to subtle indications of problems as someone who has a high personal stake in the machine's operation and performance. In the same vein, assigning a junior level security administrator to read the logs will not result in solid intrusion detection. System security The web server, database servers, middleware servers, access control devices, and physical controls should all be configured with the same level of integrity, control, and countermeasures as the firewalls. However, with every business opportunity there lies risk, and the Internet is no different. Challenging times lie ahead, for both auditors and their clients. Given that the Internet is accessible to everyone, there are definite risks associated with control and security. Generally, control awareness is not as high in East Asia as it is in the West. This attitude must change - not only in auditors and business managers, but also in the members of the general public. Until now auditors have been able to adopt either a substantive or compliance approach. In an e-commerce environment, traditional audit tests may not carry much meaning - so new method of assurance an auditing techniques need to be developed. Nevertheless, the primary issues of e-commerce presents to auditors of a business conducting trading through internet are audit trail, interrogation, security, reliability and privacy in respect of control, policies, procedures and standards. For the control issues should be taken into account by considerably care by auditors, the following elements should also be discussed. They are EDI controls, file controls, PC controls, network controls, Internet controls and data protection. The timeframe for wider acceptance of e-commerce is difficult to determine but there is every likelihood that digital cash and virtual shopping will be a common feature of business activity in both the public and private sectors in the next few year. ...read more.

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