Analysis of Internal Control System on E-Commerce

Dr Mir Mohammad Azad, Mohammed Naseer K

The evolution that one can see in e-commerce, with the internet playing the main role as the best way to implement information and communication channels, to make the electronic transactions more effective, linking extranets and extending intranets to a commercial partnership environment has produced impact on what regards internal control. According to the specific characteristics of the Internet, the path taken by a transaction is not easily predictable nor is it possible to assure the security of all systems that participate in an electronic commercial transaction performance. Taking in consideration what has been said above, it is impossible to guarantee a safe electronic commercial transaction environment, by using only technological components (firewalls, for instance). Therefore, we have to conclude the need for the implementation of risk based internal control systems, which take in consideration the new internal control pattern, when commercial transactions are to be made electronically.