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