The Internet and assurance services Essay Example for Free

The profit and assertion function establish1. 0 Introduction The Internet is the greatest business tool ever invented. Merchant, trading partners and Online retail shoppers dirty dog find greater selection, convenience, and lower prices on the Internet. Online businesses can reach one thousand millions of shoppers and business partners, provide 24 hours septenary days a week of products and suffices, and better meet their customers individual needs. For these occasions, E-Commerce over the Internet has been growing. concord to ActivMedia, e-commerce legal action for 2000 will be $132 billion worldwide, which is twice as much as estimated for 1999. This figure includes revenues from B2C, B2B and Internet advantages. According to a study by eMarketer in April 2000, al intimately 34 million US households were actively exploitation the Internet, and of that number 23. 5 million or 69% have made a purchase. (http//www. cpa sack uptrust. org/online. htm) However, despite the Internets some advantages and opportunities, it also raises some new risks for businesses and has some customers worried. The risks be fraud, poor sales conversion rates, detrimental effect of negative PR due to privacy breaches and gage problems.A recent study by the Internet Fraud Complaint Centre (IFCC) showed that online auctions accounted for 48. 8% of fraud complaints. Non-delivery of goods ordered online came in second, at 19. 2%. new(prenominal)wise top fraud complaints to the centre involved securities and commodities (16. 9%), reliance cards (4. 8%) and identity theft (2. 9%). The IFCC, which is jointly run by the FBI and the Justice Departments National White Collar Crime Centre, real an average of 1,000 complaints per week after opening in May 2000. (http//www. cpawebtrust. org/online. htm)In order to reduce risks, many a(prenominal) technological solutions have been developed such as Firewalls, encryption, and digital signatures, etc. Despite these available solutions, most of Internet users still lack confidence in the medium. Therefore, third-party office service is needed to ensure sound motion. 2. 0 The Third-Party Role of Assurance Service According to AICPA, Assurance Services argon defined as independent professional services that improve the quality or context of information for decision-makers. Assurance services might involve any type of information.The goal of assurance services is information improvement, not the publication of a report on it. (http//www. aicpa. org/assurance/about/comstud/defncom. htm) More in detail, AICPA has been categorised its assurance service into two areas. Those are integrity assurance systems and security assurance systems. According to the textbook (Greenstein, et. al. 2000), integrity assurance systems ensure that the data elements captured in an electronic transaction are the agreed upon elements, and the processing and storage procedures check the integrity of the data elements and do not alter them in any unauthorised fashion. protective covering assurance system ensures the authentication of the transacting parties, and that electronic data are protected from unauthorised disclosure. There are quaternary areas that assurance service provider has to concern. Those are Security of data Privacy of data Business insurance Transaction processing integrity Above categories are the most important area that the assurance service provider has to satisfy. And those will be applied to analyse travel. com. au. 3. 0 Difference and Similarity between B2B andB2C The web has evolved as a great medium for running business.Traditional B2B transaction used EDI, phone and facsimile machine for transaction. Also, B2C was just relied on bricks and mortar outlet. However, evolution of technology enables business entity to expand its business to new area, and provides more than opportunities. Despite of Internets advantages for business entity, the risk has been arisen along with deve lopment of technology. According to recent survey of Computer Security Institute and the FBI, not surprisingly, computer-related crimes are up, as are the costs related to such crimes.This yr, the survey include results from 538 respondents from a number of industries corporations, government agencies, financial institutions, and universities. This year, total losses, based on the 186 respondents willing to provide flesh out on actual losses, totalled approximately US$378 million. Thats up from the US$265 million reported last year by 249 respondents. Based on this data, on average, each of the 186 companies lost more than US$2 million dollars in security breaches. (http//www. advisor. com/Articles. nsf/aid/HARTB15) In this section, similarity and differences animate between two models will be analysed.Based on the result of analysis, our assurance team provides desirable solution for B2B and B2C transaction B2C Perspective B2C is birth is considered very vulnerable, because th e party involved in transaction or actions have no prior knowledge, they are completely strangers. Many risks involve during B2C transaction such as transmission of sensitive data (ie credit card number). In B2C e-commerce, the customers are the general public. Therefore, its transaction can be easily exposed. It is the one rationality that consumers reluctant to shop over the Online.To decrease the risk and increase positive consumer perception, most of e-tailers employ security system, and state their privacy and security policy in its Web site. B2B Perspective B2B are interacting in more secure environment with respect to assurance of the electronic business environment. The nature of B2B e-commerce is that operator just interact with its business customer. Thus, the main concern for B2B is lying in their intellectual property. Many of the intellectual property are stored online in intangible form. Also many confidential information and trade secret is transmitted online.The re ason they are safer is because B2B transactions are conducted usually through companies that have an existing relationship with each other or trading contractual agreements. So it can be said that they have mutual relationship. These existing relationships have evolved from the days of Electronic Data Interchange (EDI) to the fully functioning web sites on the cosmea Wide Web or on company extranets. Due to evolution, the transaction has been completed within vanguard (Value-Added Networks). Although, the evolution enable business entity to interact with its partner more efficient, the risk related in transaction has been increased.