PracticeConsultingWarning over auditing standards and e-commerce

Warning over auditing standards and e-commerce

Auditing standards and guidance have not kept pace with the implications of e-commerce and must be reviewed if they are to remain relevant, the English ICA audit faculty has warned the Auditing Practices Board.

The rapid and continued expansion of e-commerce is leading to questions about the country where such transactions take place, the laws which they are subject to, the taxation consequences and, in the case of the financial services industry, the jurisdiction of the regulator, the faculty said.

In particular the institute said it believed SAS 300 – which examines accounting and internal control systems and audit risk assessments – is out-of-date and is in urgent need of update to reflect current practice, both in respect of e-commerce and otherwise.

In a letter to APB chairman Ian Plaistowe, approved by the English ICA council at its 5 May meeting, the faculty said: ‘We consider that auditing standards and guidance have not kept pace with the auditing implications of the e-commerce and that, at a minimum, there should be a review of all standards to ascertain whether they are, and will still be, relevant over the coming years.’

Accountancy Age/Sage survey: Charting the profession’s use of e-commerce

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer