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In: Accounting

Identify at least one risk that auditors need to consider for companies that process Web-based sales...

Identify at least one risk that auditors need to consider for companies that process Web-based sales transactions, including credit card payments. For the risk identified, develop a mitigation risk strategy. Provide a specific example.

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Expert Solution

The Most important risk that auditors need to consider for companies that process web based Sales transcations is security risk i.e Virus attacks or E-Frauds.. we have seen in so many cases where hackers are able to breach the security and can harm the business. The auditor need to understand the business procedure to identify and mitigate the risk.

Below are the some steps to be followed for risk mitigation-

  1. The reports of all transcations need to be monitored regularly so that any Unauthorised access can be idenitifed and rectifed immeditely. Unusual activity on the website will help us to be careful.
  2. The company needs to ensure that he has placed the strong anti virus to avoid any virus attack which will not only affect business and also the records.
  3. The Firewall should be strong to avoid unwanted traffic to the website which will also protect its server
  4. Data to be stored in a safe manner without access to anyone other than authorised persons.
  5. 24*7 monitoring of the website is necessary.

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