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said it believed SAS300 – which examines accounting and internal control systems and audit risk assessments – is out-of-date and is in urgent need of update to reflect current practice, both in respect of e-commerce and otherwise.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.’
APB technical director Jon Grant welcomed the institute’s comments. ‘There is a case for the APB considering producing guidance in this area,’ he said. The APB will debate the e-commerce issue when it next meets on 13 June.
Just one half of UK practices have implemented a pricing structure around auto enrolment implementation and advice - with many suffering increased costs
Deloitte's north-west Europe foray; BDO, Smith & Williamson investment paths; Shelley Stock Hutter; and Wilkins Kennedy discussed by editor Kevin Reed on our Friday Afternoon Live broadcast
Accountants should alter their perspective on auto-enrolment to maximise business opportunities, according to Eric Clapton.
Kevin Reed discusses whether new accountancy group Cogital can rival the Big Four...and its likely direction of travel