Abstract
M.Comm.
"The convergence of computer networking and telecommunication
technologies is making it possible for groups of companies to co-ordinate
geographically and institutionally distributed capabilities into a single virtual
organisation and to achieve powerful competitive advantages in the process"
(Grimshaw & Kwok, 1998:45). To what extent do these developments effect
the auditor's approach in determining his audit strategy? According to
Jenkins, Cooke and Quest (1992:18), one of the factors that effects the audit
strategy is the overall control environment of the business.
The objectives of this short dissertation will be:
to identify the risks from an audit perspective that are associated with
the virtual enterprise; and
to identify controls which the management of the auditor's client could
implement to minimise these risks. This short dissertation has concentrated exclusively on the investigation of
risks and the related controls which are relevant to the auditor in the virtual
enterprise. Certain limitations have been necessary in order to remain
focused, namely:
The so-called teleshopping or telemarketing organisation is excluded
from this short dissertation; and
Plastic cards and the detail controls under each of the main category of
computer controls are also excluded.