The business environment of the early 21st century continues to change with increasing vigour. The growth of e-commerce and e-retailing, and the use of the internet for the movement of goods, services and information has clearly promoted a greater interconnectivity. An interconnectivity that has not only opened up and created enormous business opportunities, but has also increased the exposure of UK businesses, in particular UK companies, to previously unknown levels of risks and security threats, the costs and consequences of which have been and indeed continue to be significant.36


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Explain how such change has affected the role of external auditors in undertaking their duties as required by the Companies Act 1985.

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