Internal Control Essay

Submitted By Juhere
Words: 529
Pages: 3

Security breaches, fraud and customer disputes represent just some of the hazards and risks that you come across with e-Commerce. A single incident could result in fines, negative publicity and a loss of trust and credibility for your organisation.
Whilst an element of risk is unavoidable, the designing and implementation of a strong internal control system and using the latest technological advances together combats, safeguards, prevents and reduces against these risks and hazards.
1. Protection from Attacks and Intrusion:
The greatest hazard to e-commerce from the internet is the economic losses that may occur if it is subjected to attack via the internet. Computer viruses are rampant, viruses cause unnecessary delays, file backups, storage problems, and other similar difficulties. The danger of hackers accessing files and corrupting accounts adds more stress to an already complex operation.

The use of Virus Protection, firewalls, passwords, regular backup act towards controlling this risk.
The use of use of Public Key Infrastructure (PKI) also helps protect the security of information exchanged over the internet.

2. Keeping up with orders and supplies:
Keeping stock with real time while dealing with online orders and also purchases, you need to have strict controls in place. So that your inventory systems are linked with suppliers and respond to customer demands quickly and efficiently.

Use of Electronic data interchange enables this without human intervention.
This also saves time in data entry, ordering, invoicing etc. creating an efficient real-time system.

3. Identity management:
In an e-commerce environment it is difficult to see the customer, hence, establishing a correct identify of the person who we are dealing with is important.
All the people who are related to the organisations like employees, customers, business partners, suppliers need to be protected using these controls.
Use of Controls like passwords reset, encryption techniques, and public key cryptography helps dealing with this hazard. Consider encrypting financial information and other confidential data (using encryption software). Hackers or third parties will not be able to access encrypted data without a key. This is particularly relevant for any…