IS and Comm D - Internet Implications for Business Flashcards
_____ allows customers to pay for goods or services from a website while maintaining financial privacy
E-cash
A credit card, site draft, and e-check are _______
not anonymous
Implementing EDI with supplies is an effective tool to
reduce costs by reducing raw materials inventory
Business-to-business (B2B) commerce seeks to bring buyers and sellers together using ______
the internet
An essential element of the audit trail in an EDI system is
network and sender/recipient acknowledgments
A benefit of using EFT for international cash transactions is
reduction of the frequency of data-entry errors
An internal version of the internet that can be accessed using conventional WWW compatible hardware and software is called
an intranet
A network node used to setup a boundary that prevents traffic from one segment to cross over to another is
a firewall
EDI can be distinguished from other forms of electronic commerce in that
EDI transactions are formatted using standards that are uniform worldwide
The required implementation of EDI in a supplier/purchaser relationship comes with the advantages:
- access to inventory product balances
- savings in A/R
- better tracking of deliveries and payments
- reduction in payment float
The required implementation of EDI is not advantageous for ____ because ____
the supplier; compatibility with other procedures an systems
The traditional manual procurement of direct and indirect resources used in manufacturing has been replaced by
online commerce via B2B
A research-based firm in the medical field could use the following internet-based tools for collaboration:
- email application
- videoconferencing
- groupware system
EDI is used
to electronically transfer information between and within organization computers. It is communication between computer software applications, not between humans.
There are additional costs related to EDI as compared to the traditional paper environment in that
translation software is needed to convert transactions from the entity’s internal format to a standard EDI format
Every site connected to a TCP/IP network has a unique address. Fact or Fiction?
Fact
Local Area Network (LAN) is
a series of microcomputers linked together by cable and sometimes using a common storage device
A network of computers located throughout an organization’s different facilities and linked to a centralized computer to fulfill information processing needs is called
a distributed data processing
Corporate intranets are typically characterized by ______ as compared to local and wide area networks
higher security risk and lower cost
A benefit of transmitting transactions in an EDI environment is
a compressed business cycle with lower year end receivables balances
The internet is made up of a series of networks that include
gateways to allow mainframe computers to connect to personal computers
Routers determine
the best path for data
Bridges connect
physically separate LAN’s
Repeaters strengthen
signal strength
A major advantage int he adoption and use of electronic commerce lies in the replacement of
paper documents
Savings in clerical costs and transaction processing time are most advantageous for
electronic commerce
E-commerce security measures include
- encryption
- firewalls
- user account mgtm
Simulation is
an auditing tool in testing transaction processing systems
EDI is best defined as
electronic business information is exchanged between 2 or more businesses
In building an EDI system, the process used to determine which elements in the entity’s computer system corresponds to the standard data elements is
mapping
Translation in EDI is
changing computer code from one language to another
Encryption is
used to prevent interception of data and to store data so that others cannot read it
Decoding is
converting encrypted data back to readable data
Benefit of EDI includes
improved business relationships with trading partners
EDI transmits
document data, not the actual document
External users of AIS include
- investors
- creditors
- gov. agencies
Internal users of AIS include
- company mgmt
- company employees
To protect data from being accessed by unauthorized users, companies must
maintain firewalls
Anyone can establish a home page on the Internet. Fact or Fiction?
FACT
There are no security standards for connecting to the internet and a coalition of internet providers does not exist to dictate such standards. Fact or Fiction?
FACT
A manufacturing company that wants to be able to place material orders more efficiently would use
EDI
Ways to efficiently pay for materials include:
- Electronic check presentment
- ACH
- EFT
An electronic meeting conducted among several parties at remote sites is referred to as
teleconferencing
In an e-commerce environment that requires that the IT system be available on a continuous basis, more emphasis should be placed on
maintaining redundant systems for instant availability to assure the flow of transactions
Effective use of B2B should enable companies to
both increase market efficiency and reduce purchasing costs
A company estimates the probability of occurrence of user error to be 90%, with evenly distributed losses ranging from $1,000 to $30,000. What is the expected annual loss from user error?
$13,950
((1,000+30,000) /2) * 90%
An essential element of the audit trail in an EDI system is
activity logs that indicate failed transactions
An encryption feature that can be used to authenticate the originator of a document and ensure the message is intact and has not been tampered with is
digital signatures
An advantage of using the internet for electronic commerce rather than a traditional VAN is that the internet
permits EDI transactions to be sent to trading partners as transactions occur
Reasons for a company to use EFT with an EDI system include:
- negotiation of discounts based upon prompt payment
- improve cash mgmt program
- reduce input time and input errors
An auditor usually considers the greatest risk with EDI to be
improper distribution of EDI transactions
