（2000）The impacts of electronic commerce on auditing practices：an auditing process model for evidence collection and validation.pdfVIP

The Impacts of Electronic Commerce on Auditing Practices: An Auditing Process Model for Evidence Collection and Validation Chien-Chih Yu*, Hung-Chao Yu and Chi-Chun Chou National ChengChi University, Taiwan, ROC Abstract The main purposes of this paper are twofold. First, the paper identifies and discusses the potential impacts of electronic commerce on auditing practices in the emerging paperless on-line transaction environment. Second, it provides two auditing process models that incorporate modern network security tech- niques and show how an audit can be conducted in an EC environment. A periodical auditing process model (PAPM) is proposed to demonstrate how secure electronic technologies can be used to facilitate the auditor’s evidence collection and validation process for annual and semi-annual audits. We also present a continuous auditing process model (CAPM) which extends the func- tions of PAPM for continuous auditing. In CAPM, a real-time transaction monitoring system is used to link to firms’ accounting information systems for assisting the auditor to detect abnormal activities and generate exception reports on a continuous basis. The CAPM approach intends not only to ensure integrity