Matakuliah
Tahun
: F0122 – Seminar Akuntansi
: 2009
E-Commerce and Accounting Issues
Pertemuan 10
Ecommerce and Accounting Issues
Accounting Seminar
Week 10
How E-Commerce Works?
• http://communication.howstuffworks.com/ecommerce.htm
Problems arise in accounting, auditing, and
taxation as the world moves ever forward
into electronic commerce.
• Stewardship, control, and security problems
such as the explosion of computer and Internet
fraud
• Auditing and information systems problems such
as the loss of audit trails over global networks of
transactions
• Revenue accounting problems such as gross vs.
net, bartering, and recognition timing.
Problems arise in accounting, auditing, and
taxation as the world moves ever forward
into electronic commerce (2)
• Cost accounting problems such as accounting
for the costs of intangibles
• Managerial accounting problems apart from cost
accounting, including evaluation of return on
investment (ROI) that includes startup net losses
in the numerator and excludes intangibles in the
denominator.
• Taxation problems such as the purchase and
sale of merchandise and service outside
accustomed taxation jurisdictions
Advantages of electronic commerce
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Convenience
Speed
Information Access Volume
Expense Savings (e.g., Marketing)
Reduced Transactions Cost
Improved Training & Education
– (Army University and IRS University)
• Revenue Enhancing
• Reduced Barriers to Entry
• Innovative Products & Services
Advantages of electronic commerce (2)
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Increased Price Competition
Increased Vendor Selection
Increased Access to Customers
Customer Behavior/Interest Databases
(Like it or not, have a cookie!)
• Increased Ability to Place Custom Orders
• Improved Warranty & Customer Service
Customized & Personalized Feedback
Common Interest Virtual Communities
• Globalization of Business and Labor
Disadvantages of electronic commerce
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Ever-Changing Technologies
Geek Dependent Systems
Going Concern Risks
Risk of Service Disruptions
Customers Need Computers
Customers Need Access
Shortage of Bandwidth
Frauds & Error Risk
Disadvantages of electronic commerce (2)
• Highly Creative Deceptions
• Security Nightmares
• Privacy Risks
– (Data sale, theft, sniffers)
• Hacker Targets
• Dehumanization of Life
• Rise in Gambling & Porn
• Cut-Throat Competion
– (e.g., Encyclopedia Britannica)
• Information Warfare
• System-Wide Vulnerability
Common Electronic Risks
• Disruption of service
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Hardware/software failure
Virus
Worm
Trojan Horse
Hoax
Logic Bomb
• Unauthorized access
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Trap Door
Data theft
• Loss of data/information
• Privacy issues
Financial Statement Assurance in an E-Business
Environment
• Risks uniquely present in an e-business environment.
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Networked transactions
Changing technologies that can tank a business overnight
Soft assets dominate hard assets
Ever-evolving series of mergers and acquisitions
Short and high-risk product life cycles
Young and inexperienced labor force
Success or failure may ride on one person or a few key people
Lack of management focus on cost control
• Successions of losses do not necessarily impair a going
concern (provided investors are willing to keep infusing
the business with cash)
• Substantive testing in audits may not be practical or
feasible (see Statement on Auditing Standards [SAS] 80,
Amendment to SAS 31, Evidential Matter)
Assignment
• Discuss and answer the questions related to the
following topic:
– Yahoo, Google and Internet Math --- Revenue Is Counted
Differently By the Web-Search Powerhouses, Creating
Confusion for Investors
• Find the case study in additional materials