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The Emerging Need for E-Commerce Accepted Practice (ECAP) 59
Wilkinson (1989) identifies three major approaches to audits of computerbased
systems. These are auditing around the computer, auditing through the
computer and auditing with the computer. The first two approaches are mainly used
for tests of controls; they involve such techniques as traces of selected transactions,
test data, integrated test facilities, parallel simulations and embedded audit modules.
The auditing with the computer approach uses the Generalised Audit Software
(GAS) technique. These audits are now performed in a rapidly changing technological
environment, and the emergence of the WWW and the e-phenomenon
necessitate a modification of the audit procedure for electronic transactions to suit
that environment.
The Internet creates many more possibilities for improving life. For example,
classified ads bring in a large percentage of newspaper industry revenues, but ads
can be replaced by a much cheaper and more convenient electronic system. It is
often thought that instead of buying an entire newspaper, readers will pay for the
individual stories in which they are interested. Someone wishing to purchase a VCR
might send an ‘intelligent agent’ into the Internet to collect bids from suppliers for
a unit that meets desired specifications, and then selects the best choice. While such
scenarios are technically feasible, some industries may not allow software agents to
collect their prices (Odlyzko, 1997).
Many artificial barriers could be introduced into this digital economy. For
example, in 1990, IBM introduced the LaserPrinter E, a lower cost version of its
LaserPrinter. The two versions were identical, except that the E version printed five
pages per minute instead of ten for the regular one. This was achieved (as was found
by independent testers, and was not advertised by IBM) through the addition of
additional chips to the E version that did nothing but slow down processing. Thus,
the E model cost more to produce, sold for less and was less useful. Consumers who
do not need to print much, and are not willing to pay for the more expensive version,
obtained this laser printer. Consumers who do need high capacity obtain a lower
price than they might otherwise have to pay, since the manufacturer’s fixed costs
are spread over more units (Odlyzko, 1997). Another artificial barrier that could
possibly lead to legacy is the bundling of software. Bundling consists of several
software goods packaged together, such as a word processor, a spreadsheet and
a presentation program in one software suite (such as Microsoft Office) (Odlyzko,
1997). Because of this marketing strategy, some of these products become the de
facto standard and even when there is a move away from these products, we still
have people using them.
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