1. Chapter 15-1

2. Chapter 15-2 Chapter 15: Accounting on the Internet Introduction The Internet and the World Wide Web XBRL: Financial Reporting on the Internet Electronic Commerce Privacy and Security on the Internet

3. Chapter 15-3 The Internet and World Wide Web Internet Addresses and Software Intranets and Extranets The World Wide Web, HTML, and IDEA Groupware, Electronic Conferencing, and Blogs

4. Chapter 15-4 Internet Addresses and Software Domain Address  Also called a Uniform Resource Locator (URL)  www.Name.com.uk Internet Protocol (IP)  Numeric address of domain address  207.142.131.248  Transmission Control Protocol (TCP)

5. Chapter 15-5 Intranets and Extranets Intranets  Based on same software as the Internet  Internal to the organization  Outsiders are unable to access information Extranets  Enable external users to access intranets  Utilize passwords or private data communications channels

6. Chapter 15-6 The World Wide Web, HTML, and IDEA World Wide Web  Multimedia portion of the Internet Hypertext Markup Language (HTML)  Editing language  Used in design of web pages Hypertext Transfer Protocol (HTTP)  Communications protocol used to transfer web pages

7. Chapter 15-7 HTML Code

8. Chapter 15-8 Display of HTML Code

9. Chapter 15-9 Groupware, Electronic Conferencing, and Blogs Groupware  Allow users to complete numerous tasks electronically  Send and receive e-mail, collaborate on work tasks, schedule appointments, share files  Software include Exchange, Groupwise, Lotus Notes, and Outlook

10. Chapter 15-10 Groupware, Electronic Conferencing, and Blogs Instant Messaging Software  Remote users communicate in real time  Electronic Conferencing Knowledge Management  Programs utilized to distribute expertise within the organization Blogs  Collaboration tool  Create, share, and leverage knowledge

11. Chapter 15-11 Which of the following is most likely to contain only numbers? A.Domain address B.URL address C.IP address D.Postal address Study Break #1

12. Chapter 15-12 Which of the following is most likely to contain only numbers? A.Domain address B.URL address C.IP address D.Postal address Study Break #1 - Answer

13. Chapter 15-13 Which of the following enables users to view data with a web browser? A.Intranet B.Extranet C.Internet D.All of these Study Break #2

14. Chapter 15-14 Which of the following enables users to view data with a web browser? A.Intranet B.Extranet C.Internet D.All of these Study Break #2 - Answer

15. Chapter 15-15 XBRL: Financial Reporting on the Internet eXtensible Markup Language (XML)  Similar to HTML  Users define their own tags  XML tags describe the data eXtensible Business Reporting Language  Tags are standardized for business reporting purposes

16. Chapter 15-16 XBRL Code

17. Chapter 15-17 XBRL: Financial Reporting on the Internet XBRL Instance Documents and Taxonomies  Must understand the standard tags  Must understand the rules that govern the use of the tags Current Status of XBRL  XBRL International Consortium

18. Chapter 15-18 How XBRL Affects Accountants

19. Chapter 15-19 XBRL: Financial Reporting on the Internet The Benefits of XBRL  Transmit financial data in standard format  Data items are uniquely defined  Searching for tags is easier (IDEA)  Data is self-checking  Automatic and reliable exchange of financial information  Companies are not constrained to specific formats

20. Chapter 15-20 Electronic Commerce Definition  Conduct of business with computers and data communications Categories of Electronic Commerce  Retail sales  E-payments and E-wallets  Electronic data interchange

21. Chapter 15-21 All of the following are markup languages (that use edit tags) except: A.HTML B.XOR C.XML D.XBRL Study Break #3

22. Chapter 15-22 All of the following are markup languages (that use edit tags) except: A.HTML B.XOR C.XML D.XBRL Study Break #3 - Answer

23. Chapter 15-23 A document file containing XBRL tags is a(n): A.Extranet document B.Intranet document C.Instance document D.URL Study Break #4

24. Chapter 15-24 A document file containing XBRL tags is a(n): A.Extranet document B.Intranet document C.Instance document D.URL Study Break #4 - Answer

25. Chapter 15-25 Retail Sales Overview  Virtual stores to sell directly to customers  Automated AISs Problems with Internet Retail Sales  Legitimacy of web sites  Reliance upon e-mails  Reliance upon suppliers  Click fraud  Privacy concerns

26. Chapter 15-26 Advantages of Virtual Stores

27. Chapter 15-27 E-Payments and E-Wallets E-Payments  Faster, easier, and safer way to handle online transactions  E-payment service acts as intermediary E-Wallet  Store consumer’s personal information  Customers pay for purchases by providing their e- wallet account numbers

28. Chapter 15-28 E-Payment System

29. Chapter 15-29 Business-to-Business E-Commerce Definition  Businesses buying and selling goods and services to each other over the Internet Advantages  Shortens time from purchase to delivery  Expanded variety of vendors  Reduces processing costs  Wider availability of real-time data

30. Chapter 15-30 Electronic Data Interchange and Virtual PBXs Electronic Data Interchange  Transmit information over high-speed data communications channels  Automates exchange of business information Virtual PBXs  Private Branch Exchange  Phone system used in office settings  Voice Over Internet Protocol (VOIP)

31. Chapter 15-31 Privacy and Identity Theft Definition  Using another person’s personal data that involves fraud or deception  Identity Theft and Assumption Deterrence Act of 1998 (ITADA) Company Prevention  Use preventive controls  Exercise reasonable caution to protect personal information

32. Chapter 15-32 Safeguarding Personal Data

33. Chapter 15-33 Safeguarding Personal Data

34. Chapter 15-34 Security Safeguarding electronic resources and limiting access to authorized users Access Security – Authentication  What you have – plastic card  What you know – unique information  Who you are - fingerprints

35. Chapter 15-35 Spam and Phishing Spam  Unsolicited e-mail messages  Increasingly costly to organizations Phishing  Websites requesting personal information from consumers  Most information is typically stored in AISs

36. Chapter 15-36 Firewalls Purpose  Guards against unauthorized access  Stand-alone devices and/or software Two Primary Methods  Inclusion – Access Control List (ACL)  Exclusion Problems  Denial-of-Service Attacks  Spoofing

37. Chapter 15-37 Firewall Example

38. Chapter 15-38 Firewall Hardware

39. Chapter 15-39 Intrusion Detection Systems Passive IDSs  Create logs of potential intrusions  Alert network administrators Reactive IDSs  Detect potential intrusions dynamically  Log off potentially malicious users  Program firewalls to block messages from suspected source

40. Chapter 15-40 Value-Added Networks Definition  Private, point-to-point communication channels  Usually created for security purposes Methods of Creation  Blank slate, create from scratch  Lease secure, dedicated transmission lines  Create a Virtual Private Network (VPN)

41. Chapter 15-41 Value Private Networks Definition  Similar to a VAN  Transmit messages over existing Internet connections Creating Secure Data Transmission  Use “tunneling” security protocols  Encrypt transmitted data  Authenticate remote computer

42. Chapter 15-42 VAN-based EDI System

43. Chapter 15-43 Proxy Server Definition  Network server that controls web access Advantages  Funnel internet requests through a single server  Examine and test requests for authenticity  Limit employee access to approved websites  Limit stored information  Store frequently-accessed web pages (Cache)

44. Chapter 15-44 Data Encryption Definition  Transform plaintext messages into unintelligible cyphertext messages Encryption key  Mathematical function dependent upon a large prime number  Data Encryption Standard (DES)

45. Chapter 15-45 Simple Data Encryption

46. Chapter 15-46 Data Encryption Secret Key Cryptography  Users must keep the key secret and not share the key with other parties Public Key Cryptography  Each party uses a pair of public/private encryption keys  SSL and S-HTTP

47. Chapter 15-47 Digital Signatures and Digital Time Stamping Digital Signature  Encrypted portion of message  Digital Signature Standard (DSS) Digital Certificate  Certificate Authority Digital Time-Stamping Services (DTSSs)

48. Chapter 15-48 Which of these statements is correct? A.A VPN is a type of VAN B.DES stands for “data entry system” C.An IDS is the same as a firewall D.All of these statements are correct Study Break #5

49. Chapter 15-49 Which of these statements is correct? A.A VPN is a type of VAN B.DES stands for “data entry system” C.An IDS is the same as a firewall D.All of these statements are correct Study Break #5 - Answer

50. Chapter 15-50 Spoofing means: A.Kidding someone about their firewall B.Simulating a disaster to test the effectiveness of a disaster recovery system C.Posing as an authentic user to gain access to a computer system D.Encrypting data for security purposes Study Break #6

51. Chapter 15-51 Spoofing means: A.Kidding someone about their firewall B.Simulating a disaster to test the effectiveness of a disaster recovery system C.Posing as an authentic user to gain access to a computer system D.Encrypting data for security purposes Study Break #6 - Answer

52. Chapter 15-52 Copyright Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

53. Chapter 15-53 Chapter 15