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Abstract

Companies are increasingly accelerating the integration of information technology into their financial operations, reducing reliance on paper-based documentation while retaining original copies primarily to support electronically processed transactions. This growing shift toward virtualization in business relationships with suppliers, consumers, and partners has intensified the need for trust and assurance, placing significant pressure on auditors to certify these digital safeguards. Furthermore, the widespread adoption of publishing financial reports online—initially through the establishment of corporate websites and subsequently using Adobe Acrobat to present non-interactive, read-only financial statements—aims to facilitate stakeholder access while maintaining data integrity. However, to ensure credibility, auditors must verify these reports before publication; otherwise, the absence of such certification, coupled with the internet’s capacity for real-time updates, could lead to unauthorized alterations, fraud, or the exploitation of website security vulnerabilities, thereby imposing new professional responsibilities. In response, international and American auditing standards have been issued to guide auditors through necessary procedures and tests in this digital environment. This research concludes that e-commerce strategies have introduced unique risks, necessitating that auditors possess robust IT capabilities to audit largely paperless transactions. Consequently, the profession has evolved toward continuous, real-time auditing, with the International Federation of Accountants (IFAC) identifying specific post-real-time processing procedures. Ultimately, regardless of design, all internal control systems face inherent limitations that preclude absolute assurance; thus, as these systems grow more complex, auditors must adopt more intensive and comprehensive documentation strategies.

DOI

10.33095/jeas.v14i52.1423

Subject Area

Accounting

First Page

285

Last Page

304

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