Question

With electronic commerce being used on such a large scale today, what kind of internal controls do you think should be implemented to prevent fraud or embezzlement?

Answer 1

Electronic - commerce (E- commerce) is one of the main business that is taking place in preset world with the aid of the electronic media like computer, mobile, internet etc. This E- commerce will allows user to buy and sell the goods through internet with help of computer or mobiles. Hence the name E- Commerce.

But as like many uses of E-commerce there are some disadvantages also by using E-commerce like fraud business transactions, invalid users in E- business. Etc. Let us study how to avoid such frauds by implement internal controls.

Internal controls implemented to prevent fraud or embezzlement

1. Users of E- Commerce should provide clear details about business account.
2. The E- commerce tools should be strong. And are free from malware and tools implemented in such a way that hackers should not hack the business tools and transactions
3. Day, weekly, monthly or yearly wise business transactions should be recorded in order to get complete business transaction
4. E- Commerce tools should give complete details and terms and conditions about product/service for buyers or sellers. This avoids the chances of fraud in business transactions