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Industry Overview
Business Risks
Audit Risks
Audit Planning and Procedures
Potent Potables
100
This is an online marketing practice that has seen rapid growth since its inception on the web and involves products purchased through an affiliate between two parties.
What is Affiliate Marketing?
100
In most cases, these are only fixed twice per day, leaving the company financially exposed if the rates are fixed incorrectly.
What are exchange rates?
100
This Statement identifies specific matters to assist the auditor when considering the significance of e-commerce to the entity’s business activities and the effect of e-commerce on the auditor's assessments of risk for the purpose of forming an opinion on the financial statements.
What is International Auditing Practice Statement 1013: Electronic Commerce – Effect on the Audit of Financial Statements
100
Being management’s main responsibility, these controls are highly susceptible to fraud and are key components when auditing affiliate companies.
What are Internal Controls?
100
A hairy bellybutton
What is a Fuzzy Navel?
200
Transactions in this industry are made through an affiliate via this medium.
What is the world wide web?
200
When a user has a negative experience on an affiliate market because of another user, it negatively affects this.
What is the affiliate market's reputation?
200
The risk that is always considered to be high in e-commerce.
What is Inherent Risk?
200
This internal control helps to secure online transactions by intercepting unwanted traffic and protecting the web server from destruction.
What is a Firewall?
200
Iced tea from the "Big Apple"
What is a Long Island Iced Tea?
300
This can be sold, marketed, bought, and distributed over the internet.
What is a product?
300
This causes a company to constantly make technical changes and creates a business risk by making compliance costly and time consuming.
What is extensive regulation?
300
Can either be perpetrated by an employee within the firewall or an anonymous party in a foreign country.
What is E-commerce fraud?
300
This integrated system works with transactions made in the electronic environment in order to increase the processing efficiency and production.
What is Enterprise Resource Planning?
300
This is a common tool found in your garage
What is a screwdriver?
400
This is the most common form of payment used in affiliate marketing.
What are credit cards?
400
The widespread use of these has made affiliate markets develop even more technology to be easily usable on these devices.
What are smart phones?
400
This risk can be reduced by increasing substantive tests.
What is Detection Risk?
400
These operating expenses make up the majority of the costs associated within the affiliate-marketing industry.
What are sales and marketing costs?
400
This is a drink made famous by "The Dude"
What is a White Russian?
500
This well known "E" online market place is an ideal example of an affiliate market.
What is EBay?
500
This is an affiliate market's biggest "asset", even though it doesn't show up on the balance sheet. The risk of losing or keeping this asset presents the company's largest business risk.
What is the customer base?
500
Considered the most important risk factors in E-commerce.
What is Control Risk?
500
Verifying the active employees and their cooresponding pay rates and hours would be an audit procedure specific to this account.
What is Payroll?
500
This is what we are going to need after Dr. Hart's final
What are Chimy's Margaritas?