Making Cyberspace a Safer Place to Shop
CPA WebTrust Program offers consumers peace of mind in the electronic commerce marketplace

The Internet, undoubtedly, affords users a wealth of information and convenience, but how can consumers be sure that when they are using Web sites that offer electronic commerce, that their transactions are safeguarded? Can consumers be guaranteed that their credit card number is protected, that it doesn't become public domain on the information superhighway?

Electronic commerce involves individuals as well as organizations engaging in a variety of electronic business transactions, without paper documents, using computer and telecommunication networks. These networks can be either public or private, or a combination of the two. Traditionally, the definition of electronic commerce has focused on Electronic Data Interchange (EDI) as the primary means of conducting business electronically between entities having pre-established contractual relationships. More recently, however, the definition of electronic commerce has broadened to encompass business conducted over the Internet, specifically, the World Wide Web, and includes entities not previously known to each other. This is a result of the Web's surge in popularity and the acceptance of the Internet as a viable transport vehicle for business information.

Some broad risks involved in conducting business electronically include anonymity – electronic commerce often involves transactions between strangers; transaction integrity – without proper controls, electronic transactions and documents can be easily changed, misplaced, duplicated and incorrectly processed; and information protection – the confidentiality of sensitive information transmitted over the Internet can be compromised.

The American Institute of Certified Public Accountants (AICPA) is taking measures to combat these potential risks via the CPA WebTrust Program.

At its September 16, 1997 press conference, the AICPA in conjunction with the Canadian Institute of Chartered Accountants, introduced the CPA WebTrust "seal" to assure consumers that Web sites which include the WebTrust seal are trustworthy and reliable with regard to confidential consumer information.

If consumers want to shop with confidence when surfing the Internet, the CPA WebTrust seal can bring forth peace of mind. If an Internet site contains this logo on its Web page, it complies with CPA WebTrust principals and criteria for online business. Personal data will be protected, orders will be processed efficiently, and the transaction details will be accurate.

The seal can only be awarded to Web sites by a trained CPA and each site bearing the seal must be re-audited every 90 days, thus consumers using "sealed" Web sites can feel secure that the site on which they are doing business has been certified by an objective, professional accountant.

For a company to earn the WebTrust logo on its Web page, it must reveal and adhere to its business practices for online transactions and establish effective methods to guarantee the proper fulfillment and the billing of orders. The CPA also must confirm that a company has a physical location. The WebTrust seal is administered by VeriSign, a digital certificate provider which authenticates the identity of a particular entity on the Internet.

By the year 2000, it is estimated that the volume of business on the World Wide Web will exceed $6.5 billion, with hundreds of thousands of commercial Web sites offering online consumers a plethora of options from which to choose.

In light of this gargantuan growth, the CPA WebTrust Program offers consumers added confidence when they are shopping online.

By clicking on the WebTrust seal, consumers will have access to an online copy of the auditor's report on a particular company. Information such as the company's policy on returns, or when their Web site was certified will be available at consumer's fingertips.

There are numerous other companies and organizations that provide Web site certification programs, and as the Internet continues to grow, more entities will evolve whose purpose will be to insure the integrity of consumer activity on the information superhighway. However, there are significant differences between the policies of other companies' certification programs, and the CPA WebTrust Program.

Some services guarantee that only Web site transactions are secure, other programs focus on privacy issues, while others primary focus is on the legitimacy of companies doing business on the Web, or to a companies' voluntary commitment to meeting certain standards for electronic commerce.

The CPA WebTrust is the only program which guarantees an audit of technology, security and business practices. Components of the WebTrust Program include:

• Independent Web site evaluation by specially trained and licensed CPAs.
• A comprehensive audit of a company's Web site business practices, transaction integrity and information protection, as these three areas are of the greatest concern to a majority of consumers conducting business over the Internet.
• Periodic re-certification, which occurs at least every three months, ensures that a Web site continues to meet the standards of the CPA WebTrust Program. This is important, as Web sites and business practices can easily be changed on the World Wide Web.
• Assurance that all Web sites displaying the CPA WebTrust seal are committed to meeting CPA WebTrust standards. Each CPA firm that performs the service is specially licensed, and every CPA responsible for auditing sites goes through a training program administered by the AICPA.
• Online verification means that anyone at any time can confirm that a Web site is certified to display the CPA WebTrust seal. This feature lets consumers spot check the most recent audit report of any site bearing the WebTrust seal.

The objective of the CPA WebTrust Program is sharply defined: grow consumer confidence in Web site shopping by requiring businesses bearing the WebTrust seal to uphold the highest standards of operation and security possible. Via this program, consumers can not only shop without leaving their home, but also feel confident that their purchases will be safeguarded by a reputable organization such as the American Institute of Certified Public Accountants, which represent 331,000 CPAs nationwide.

John Gaver is Editorial Director of The Lane Report.

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