A Review on Digital auditing systems & Smart cards


Digital auditing systems

1- Electronic checks:


Definition of electronic cheques
It is an electronic document that contains many data consisting of the number of the check, the name of the payer, the account number, the name of the bank, the name of the beneficiary and the value to be paid, the unit of the currency used, the electronic signature of the payer and the electronic endorsement of the cheque and the electronic confirmation of the cheque and the electronic confirmation of the cheque to the beneficiary after it is signed electronically and encrypted and obtained by the beneficiary and also signed electronically and then sent by e-mail accompanied by an electronic deposit notice in his account in the bank.

The idea of an electronic check depends on the presence of an intermediary to complete the clearance, which is represented by the clearance authority (bank) shared by the seller and the buyer by opening a current account with their balance, with the electronic signature of each and its registration in the database of the electronic bank.

It is equivalent to traditional paper cheques, a documented and secure e-mail sent by the source of the cheque to the recipient of the cheque and carries its task as a document pledge to pay and carries a digital signature that can be confirmed electronically and it differs from the standard handwritten signature, which contains a secure electronic file containing information about the axis of the cheque and its destination, in addition to other information, the date of the check's disbursement, the value of the beneficiary, the account number and the transfer to it.

Procedures and stages of the use of the e-check
The buyer jointly opens a current account with the bank and determines an electronic signature and the subscription of the system through its subscription with the same entity to open a current account, the buyer determines the item he wishes to buy and frees the electronic check of the value of the item and sends it to the seller by e-mail, receives the check and examines it and also signs it and sends it to the clearance authority, the latter of which checks the check and checks the buyer's balance.

Electronic cheques currently rely on two systems in their work:

A. File System integrite check:
This system allows customers to use electronic cheques as a means of payment to the merchant and uses (C I S F) a model for the paper check and these checks that are started electronically and signed with a digital signature and this system works with various mechanisms and instructions such as the approved cheque and the electronic fee voucher specified by the customer at the time of the purchase.

B. Electronic cheque payment system (Cyber cache):
This system is not handled with the payment of the cheque itself but the cheque is passed to a processing electronic payment processor and in both cases electronic cheques are processed by electronic payments processing and this can be a bank, clearing house or any authorized financial agency to process payments.


2- Electronic Remittance system (clearing):

Is the process of granting credit and debit power electronically via phones, computers and modems.

Many banks are now participating in a network of accounts that handle the electronic circulation of millions of interbank debt and creditor accounting restrictions, thereby playing the traditional role of the bank clearing group but immediately and with a high degree of efficiency. And provide immediate payment to its customers.

This system also allows the settlement of payments through the payment network, the electronic stock trading system and the clearing of cheques.

The procedures for electronic financial transfer are the signature of the client with a form approved for the benefit of the beneficiary N and this form can deduct the specified value from the client's account in a certain order (daily, weekly or monthly), and the electronic transfer form differs from the check in that its validity applies for more than one transfer, and usually the bank and the client deal with their brokers software for transfers.


E-money transfer cases:

1- If there is an intermediary: The client sends a financial transfer through the modem to the broker who sends it to the automated financial clearing house that sends the electronic financial transfer form to the client's bank and in case the balance does not cover the value of the transfer, the broker is notified, which in turn notices the customer, but in the case of the balance covering the value of the transfer, the deduction is transferred to the beneficiary account at the time of payment specified in the form.

2- In the absence of a broker: In this case the trader must have the special software that allows this process to be conducted, where this software is secured with a password of the merchant, and when the customer adopts a form to pay a certified check in favor of the merchant who sent the credit to the automated clearing house which in turn sends it to the bank to deduct the amount from the customer's account and transfer it to the merchant's account, then there is no need to achieve the adequacy of the customer's balance because the certified check achieves this.


Smart cards


Smart card definition:
This card appeared after the problems of the credit card, especially theft, which was invented in 1974 and started to be used in 1981 by FILIPS and then spread its use.

A credit card-like card containing a very small electronic flea or micro PUCE that forms a numerical memory that allows the retention of a large amount of information that takes care of the extreme details of the holder's financial situation.

Smart cards have a surprising ability in the speed of dealing and have the ability to carry out the most complex operations and is considered an electronic cash portfolio, as it expresses an electronic information system that maintains all processes and monitors current accounts, and is today one of the most important means of payment that replaces paper money and other credit cards.

Smart card pros:

Use smart card as tools to make payments:
Credit card and city association reports a 50% reduction in fraud and losses since it decided to use smart card technology.

Smart card technology as a security tool:
Its use depends on the code and the adoption of data as it results in action on such operations and the delivery of financial information in a secure environment within its information network

Use in the field of services:
It is also used as a passport for identification.

Smart card as information managers:
Today the smart card can contain between (03-16 KB) of information and the ability to process it with the expectation of increased capacity in the future in return for the continuous reduction in its cost, as banks use this card to equip customers with information related to accounts, balances and payment transactions.

Use smart card as an electronic wallet:
The smart card can be used in the electronic money wallet and empty of money and this feature is unique as it contains a small processor for magnetic strips corresponding to the cash amounts and thus the banks can earn revenue from their use in the execution of daily transactions where the number of cash transactions conducted in 1993 is estimated at about 1.8 trillion