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The implications of electronic commerce (e-commerce) are the biggest issues facing most accounting organizations in the 1st century. E-commerce is the use of information technology and electronic communication networks to exchange business information and conduct business transactions in electronic, paper less forms. This definition illustrates that e-commerce is just commerce that now uses more electronic forms of communication (such as the Internet and E-mail) as opposed paper, face-to-face, telephone, television, or more traditional forms of communication. Due to the increase in speed, availability, and reduction of cost, this form of commerce has become adapted to almost all types of businesses.
The availability of the Internet is the primary reason for the explosion of e-commerce. Businesses can now communicate through E-mail, purchase goods on the Internet, and post web sites to help advertise their services. This has affected the accounting aspect of all businesses as well. Companies can now put their information on a web sites for stake holders to access at any time of the day. Also, online educational services also make it easier for businesses to keep updated on the latest technology or allow people to take courses via the Internet. This benefit also allows a CPA to complete their continuing education to maintain their licenses online. Also, Accounting majors may very soon be able to even take their CPA exam on-line.
With the availability of e-commerce, companies can now post their financial statements on-line. This has great benefit to stakeholders because information is now in real time and can be updates in hours as opposed to days or weeks. There is also a greater geographical reach and 4/7 availabiltiy. However, this also makes financial statements easier to modify and harder to control. Many companies in the last few years have been taking advantage of this to alter thier income statements and balance sheet. Companies can confuse people to what information was audited and what was not by using hyperlinks to redirect the user from audited sections to unaudited sections. Stake holders must be very careful to the reliability and accuracy of the data.
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