Which change to mission-critical functions by electronic commerce affects the control environment?

• A. Transactions are performed automatically and in real time.
• B. Customer identification is simpler and performed annually.
• C. Authentication is supported with physical forms and documents.
• D. Transmissions are verified by accountants before proceeding.

Answer: (A)

Automation of mission-critical functions in electronic commerce changes the control environment because it shifts emphasis from manual, people-driven controls to IT-driven governance and oversight. When transactions flow automatically in real time, management must rely on formal change management, access controls, system logging, and ongoing monitoring to maintain integrity, security, and reliability, which reshapes the tone at the top and expectations for accountability. The other options describe specific control activities or procedures, not the overall environment, so they don’t reshape the control environment in the same fundamental way.