Q6RQ - Horngren'S Financial And Managerial Accounting

Question

List internal control procedures related to e-commerce.

Step-by-Step Solution

Answer

Internal control procedures related to e-commerce include encryption and firewalls.

Step 1: Definition of internal controls

Internal controls are the control that controls the internal activities of the company. Internal controls include controlling the documentation and audits like activities.

Step 2: Internal control procedures

Internal control of e-commerce is done by using two techniques firewalls and encryption. In the encryption technique, the information of the customers is protected by using a mathematical system. This system is the primary method for security.

The second technique used by e-commerce is firewalls in this a local network system is used by the companies to protect data. In this, only those users can access the website who has the id and password of the website.