E commerce icai

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THE INSTITUTE OF CHARTERED ACCOUNTANT OF

INDIA

Project Report Presented On The Completion Of 100 hrs Of ITT

Training

Presented By:-Dipanshu Allwani

CRO 0360720

Electronic Commerce

CA Rahul JainChairman

THE INSTITUTE OF CHARTERED ACCOUNTANT OF

INDIA

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I Wish To Express My Deep Gratitude And Everlasting

Indebtedness To Our Guide Mr. Vishal Karanjiker & Mr.

MANOJ KORI SIR Whose Advise, Constant

Encouragement, Invaluable Suggestions And Expert

Guidance Were The Utmost Help In Completing The

Presentation Work In Prescribed Time. I Would Like To

Express My Gratitude To The Institute Of Chartered

Accountants Of India For Organizing Such A Training

Which Helped Me In Developing My Computer Skills. I Am

Equally Indebted To All Supporting Staff Members Of The

Institute Jabalpur Branch For Their Co-operation In

Completion Of My Training And Project.

ACKNOWLEDGEMENT

Dipanshu AllwaniCRO0360720

THE INSTITUTE OF CHARTERED ACCOUNTANT OF INDIA

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Dipanshu Allwani, cro0360720

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What Is a Commerce ?

Commerce refers to all the activities the purchase and sales of goods or services.

Ex:- Marketing, sales, payment, fulfillment, customer service

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Dipanshu Allwani, cro0360720 7

The race to 60 million users Radio—30 years

TV—15 years

The Internet—3 years to 90 million users

Electronic Commerce (E-Commerce)1. Electronic Commerce or e-commerce, the exchange of goods and

services by means of the Internet or other computer networks. E-commerce follows the same basic principles as traditional commerce—that is, buyers and sellers come together to exchange goods for money. But rather than conducting business in the traditional way—in stores and other “brick and mortar” buildings or through mail order catalogs and telephone operators—in e-commerce buyers and sellers transact business over networked computers.

2. E-commerce offers buyers convenience. They can visit the World Wide Web sites of multiple vendors 24 hours a day and seven days a week to compare prices and make purchases, without having to leave their homes or offices. In some cases, consumers can immediately obtain a product or service, such as an electronic book, a music file, or computer software, by downloading it over the Internet.

3. Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C

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What Is An E-Commerce ?

http://encarta.msn.com/encyclopedia_761579729/Internet.html

http://encarta.msn.com/encyclopedia_761574328/Commerce.html

http://encarta.msn.com/encyclopedia_761579872/World_Wide_Web.html

http://encarta.msn.com/encyclopedia_761579872/World_Wide_Web.html

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Types of E-Commerce

B2B (Business-to-Business)Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

B2C (Business-to-Consumer)Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole.Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far we've come!

C2B (Consumer-to-Business)A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.

C2C (Consumer-to-Consumer)There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like Pay Pal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

1

• Time for delivery of physical products

2

• Limited and selected sensory information.

3

• Privacy, security, payment, identity, contract

4

• Perishable goods and Returning goods

5

• Physical product, supplier & delivery uncertainty

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1

• Being able to conduct business 24 x 7 x 365.

2

• Access the global marketplace

3• Speed

4

• Opportunity to reduce costs

5

• Stepping beyond borders to a global view

Advantages Disadvantages

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Internet

Mobile technologies

Web architecture

Component programming

Data exchange

Multimedia

Search engines

Data mining

Intelligent agents

Access security

Cryptographic security

Watermarking

Payment systems

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IDENTIFYCUSTOMERS ADVERTISING

CREATEPRODUCT

RECEIVE PAYMENTSSEND GOODSNEGOTIATE

SALE

SELLERS CYCLE

IDENTIFYCUSTOMERS

CREATEPRODUCT

ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCT

RECEIVE PAYMENTS

ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCT

SEND GOODS RECEIVE PAYMENTS

ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCT

NEGOTIATESALE


ADVERTISINGIDENTIFY

CUSTOMERSCREATE

PRODUCTCREATE

PRODUCT

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT

ADVERTISING

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT

RECEIVE PAYMENTS

ADVERTISING

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT


ADVERTISING

NEGOTIATESALE

IDENTIFYCUSTOMERS

CREATEPRODUCT

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IDENTIFIED NEED SELECT A VENDORSEARCHES FOR

PRODUCTS

USE PRODUCT

NEGOTIATES APURCHASE

MAKES PAYMENTRECEIVES REPORT

PERFORMS MAINTENENCE

PROVIDES FEEDBACK

BUYERS CYCLE

IDENTIFIED NEED

PROVIDES FEEDBACK

SEARCHES FORPRODUCTS

IDENTIFIED NEED SELECT A VENDORSEARCHES FOR

PRODUCTS

NEGOTIATES APURCHASE

SELECT A VENDORSEARCHES FOR

PRODUCTS

MAKES PAYMENTNEGOTIATES A

PURCHASE


PRODUCTS

RECEIVES REPORT MAKES PAYMENTNEGOTIATES A

PURCHASE


PRODUCTS

USE PRODUCT


PURCHASE


PRODUCTS

PROVIDES FEEDBACK

USE PRODUCT


PURCHASE


PRODUCTS

MAKES PAYMENT

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1. Attract customers Advertising, marketing

2. Interact with customers Catalog, negotiation

3. Handle and manage orders Order capture

Payment

Transaction

Fulfillment (physical good, service good, digital good)

4. React to customer inquiries Customer service

Order tracking

Process Involved In E- Commerce

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EDI is the computer to computer exchange of business between companies.

EDI replaces the faxing and mailing of paper documents.

About 80,000 companies have made the switch to EDI to improve their Efficiency.

BENEFITS OF EDI

LESS EXPENSIVE THAN HANDLING

PAPER DOCUMENTS

MORE RELIABLE

MUCH LESSER LABOUR IS REQUIRED

LESS TIME CONSUMING

LESSE ERROROCCURRED

BECAUSE OF COMPUTER

SYSTEM

INSTANT DOCUMENTRETRIEVAL

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ELECTRONIC

PAYMENTS

CREDIT

CARD

ELECTRONIC

CHEQUES

SMART

CARDS

ELECTRONIC

PURSES

JOINT

ELECTRONIC

TRANSACTION

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Reduce Administrative

cost

Greater Security.

Increase Efficiency.

Simplified Book Keeping

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Brings Buyer and Sellers together for mutual Satisfying transaction through online Market.

Critical Mass of buyers and Sellers Interactivity. Negotiation And Bargaining. New Products & Services. Less Time Consuming.

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Customer Internet

Merchant

Acquiring BankCard Issuing Bank

Card Association

Clearing house

1 2

3 8

4

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Suppose that you are a customer, now as a customer you will provide the card number as part of the sale voucher to the merchant

Today customer ordinarily wipes the card through a magnetic reader. Merchant may have the policy of checking on transaction above a certain amount with his bank, which is called Acquiring Bank

The acquiring bank may complete a check that reaches all the way to your Card –Issuing Bank

Assuming that the checking process is successfully completed the merchant then submits the transaction to the acquiring bank and the settlement is made through the Card Association – Clearing House

Now your account will be debited and merchant account will be credited and hence the transaction is completed

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The Good Faster, cheaper and less prone to error

Customer centric

The Bad Hardware issues…spotted owl disease

False sense of organization

Initial cost and implementation issues

Emerging economy issues…haves and have-nots

The Ugly The bad guys and hackers…our focus today

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The advent of web-based ordering and operating systems increases the challenges many auditors face when auditing clients who are adopting e-commerce strategies. E-commerce produces new and more complex value added models and in this process several integrated applications are developed and deployed at a rapid pace. Therefore, it is important for the auditor to understand the extent of dependence of the business on e-commerce and also its impact both on the business model and operations.

Audit Consideration In an E-commerce Environment

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Proactive posture

On-going analysis and effort

Defending the Digital Frontier, Mark Doll, Sajay Rai and Jose Granado. Ernst & Young, LLP.

Presentation by …….

DIPANSHU ALLWANI

(cro 0360720)

Feed back @

[email protected]

1/20/2013

28All the best……………………

E commerce icai

Education

Transcript of E commerce icai