The Impact of E-Commerce on Public Accountants Who Perform Audits

question 63

Multiple Choice

The impact of e-commerce on public accountants who perform audits of such entities is that:

• A) audit firms now must have information technology experts as partners in audit firms.
• B) auditors now need to be experts in e-commerce and information technology.
• C) auditors now need a basic knowledge and understanding of e-commerce and information technology.
• D) auditors must decline to accept the audit of such entities and leave non-audit organisations to perform these audits.

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Definitions:

Co-op Owners

Individuals or entities that own shares in a cooperative, entitling them to use its goods, services, or facilities and participate in its governance.

Highly Competitive

A market situation featuring a large number of firms vying for consumers’ attention, often leading to lower prices and innovative products.

Perfectly Competitive

A perfectly competitive market is one where there are many buyers and sellers, all selling identical products, with no single buyer or seller able to influence the market price.

Sellers

Participants in a market who offer goods or services for sale.