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B2B suppliers: Addressing the repudiation of orders in an open account system

R. Butler (Department of Accountancy, University of Stellenbosch)

Meditari Accountancy Research

ISSN: 1022-2529

Article publication date: 1 October 2004



Suppliers suffer losses when customers repudiate B2B order transactions in open account systems. Appropriate internal control measures should be implemented to address repudiation. According to the King Report on Corporate Governance for South Africa (2002), the responsibility for internal control lies with the management of a company. This article aims to assist management in reducing the risk of repudiation to an acceptable level, by providing a framework of recommended internal control measures. The framework was compiled after considering: Requirements in the Electronic Communications and Transactions Act that make digital contracts valid. Existing control frameworks, control objectives and internal control measures addressed by COBIT® and AICPA/CICA’s Trust Services Principles and Criteria.



Butler, R. (2004), "B2B suppliers: Addressing the repudiation of orders in an open account system", Meditari Accountancy Research, Vol. 12 No. 2, pp. 21-39.



Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

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