TITLE: The Impacts of Electronic Commerce on Auditing Practices: An

Auditing Process Model for Evidence Collection and Validation

AUTHOR:
JOURNAL:

1. Research problem or question

First, the paper identifles and discusses the potential impacts of eleclronic
commerce on auditing practices in the emerging paperless on-line transaction
environment.
Second, it provides two auditing process models that incorporate modem network
security techniques and show how an audit can be conducted in an EC
environment

2. Why is problem/question important?

3. Author’s approach to solving the problem

4. Assumptions about real world
5. Relevant theories
Audit risk terdiri dari tiga komponen yaitu inherent risk, control risk, dan
detection risk.
Internal control framework menurut SAS No.56 dan 78 terdiri dari tiga
kompinen yaitu general controls, application control, dan on line real time
controls
6. Hypotheses
7. Dependent and independent variables
Dependent variable:
Independent Variable
Interverning, moderating, dan control variables
8. Sample
9. Statistical tests
10. Results

11. Conclusions
The main contribution of this paper is that we propose a conceptual framework
and corresponding solution processes for validating electronic transactions
and for conducting external continuous auditing in an EC environment. In
particular, our CAPM provides a first step to answer several issues proposed by
Kogan et al. (1999) related to continuous online auditing (COA) (e.g. the
architecture of COA, system audit, security of COA, and electronic records).

12. Improvement/Extensions
Three regulation issues that have been omitted in our discussion deserve further
research. First, it is important to have legal rules guiding the separation and
designation of duties on the development, modification, and control of invoice
applications between the CA and the
vendor.
Second, the role and legal responsibility of the CA at the stage of invoice
validation should be specified. Finally, since companies will disclose their financial
information to the public on a real-time and continuous basis, there should be a set of
generally accepted electronic principles (GAFP) that specify the content and format,
the time interval and frequency, and the amount and extent of such disclosures

TITLE: The Impacts of Electronic Commerce on Auditing Practices: An

Auditing Process Model for Evidence Collection and Validation
AUTHOR:
JOURNAL:

13. Why is problem/question important?

14. Author’s approach to solving the problem

15. Assumptions about real world

16. Relevant theories

continuous auditing theory
Unified Theory of Acceptance and Use of Technology (UTAUT) from the
Management Information Systems (MIS) discipline
UTAUT framework.

17. Hypotheses

18. Dependent and independent variables

Dependent variable:
Independent Variable
Interverning, moderating, dan control variables

19. Sample
210 internal auditors worldwide on the status of their use of continuous auditing

20. Statistical tests

Partial Least Squares method

21. Results
internal auditors' perceptions of effort expectancy and social influence are significant
predictors of their intentions to use continuous auditing.

We also find that annual sales volume of the company and voluntariness of use
significantly moderate the relationship between performance expectancy and social
influence respectively.

Additionally, we find regional differences in the significance of key UTAUT

antecedents.

Specifically, we find that the North American internal auditors are more likely to use
continuous auditing due to soft social coercion pressures of Social Influence through
peers and higher authorities.

On the other hand, Middle Eastern auditors are more likely to use the technology if it
is mandated by the higher authorities.

22. Conclusions
strong cultural differences among the critical antecedents affecting internal auditors'
intentions to use the system. North American internal auditors are more likely to
respond to soft coercion pressures created by positive Social Influence through peers
and higher authorities. On the other hand, Middle Eastern internal auditors are much
more likely to use the system if it is mandated by the higher authorities

23. Improvement/Extensions

Therefore, we suggest that different strategies depending on the

geographic location should be employed to help create the relevant kinds of
pressures on internal auditors
to use the Continuous Auditing system. The prominence of Social Influence
and Voluntariness of Use
concepts in our analysis suggests that the lag in the use of Continuous
Auditing systems can be readily
explained by the lack of socially conducive or coercive pressures in the
auditing field.