What are the security
risks in E-Commerce?
Security risk in E-Commerce
includes risk of virus attacks, unauthorized access to the information by the
employees, customer, and hackers. The authorized access may result in fraud and
therefore financial statement may be misstated due to fraud.
What are foreign
currencies risks in E-Commerce?
E-Commerce deals with trading in different currencies being an
international trade. Therefore it is difficult to translate the transactions
from different currencies into home currency (reporting currency). The regular fluctuation
of currency rates makes reporting of financial transaction more complex.
What are revenue
Recognition risks in E-Commerce?
Revenue recognition in the E-Commerce is a complex issue due to the
establishment of relationship in transaction (i.e. principle or agent),
advertising revenue share the advertiser and advertising company, initial
discount offers, bonuses subject to completion of certain conditions. Due to
complexity in revenue recognition financial statement may be subject to
material misstatement due to error.
What are legal risks
in E-Commerce?
E- Commerce involves different legal risk which includes the taxation requirement
of different countries, legal title issues, privacy of customer, contract enforcement,
and risk of money laundering.
What are controls for
E-Commerce Risk?
There is some control available for the risk mitigation; controls vary
organization to organization and situation. These controls include validation
of data, authentication of identity, installation firewall and antivirus, secured
payment methods, establishing information protection policies and protocols.
