Overview of Electronic Commerce
The Electronization of Business
B2B Process and Strategies
Electronic Commerce and the Role of Independent Third-Parties
The Regulatory Environment
EDI, Electronic Commerce and the Internet
Risks of Insecure Systems
Risk Management
Internet Security Standards
Cryptography & Authentication
Firewalls
Electronic Commerce Payment Mediums
Intelligent Agents
WEB-BASED MARKETING

1. OVERVIEW OF ELECTRONIC COMMERCE

Introduction
Definition Of Electronic Commerce
- Electronic Business
Potential Benefits Of Electronic Commerce
The Internet And WWW As Enablers Of Electronic Commerce
Impact Of Electronic Commerce On Business Models
- Overall Business and Electronic Commerce Goal Congruence
- The Impact Of Electronic Commerce On the Value Chain
- The ICDT Business Strategy Model
- Three Pillars Of Electronic Commerce
Electronic Commerce Security
Organization Of Topics
Implications for the Accounting Profession
Summary
Key Words
Review Questions
Discussion Questions
Cases

2. ELECTRONIZATION OF BUSINESS

Introduction
Principles & Axioms
- The Value Chain - Internal and External
- Deconstruction
- Bitable and non-bitable goods
- e-Commodities and Non-Commodities
- Metamarkets
- Dis-Intermediation
- Re-Intermediation
- Industry Morphing
- Cannibalization
- Techno-intensification
- Re-channeling
- Stages of Evolution
Main Effects Upon Business
Management Issues
- Can we Work with the New Economics?
- Main changes in the Business Process
New Paradigms and Metaphors
- Victoria's Secret and Cross-Advertising
- Financial Instruments Brokerage Industry
- The Wellness Industry
The Theory of Electronization
E-Business Methods and Tools
- E-Catalogs
- Tracking
- Inventory Management
- Database Marketing
- Data Warehousing and Data Mining
- Profiling
- Continuous Reporting
- Continuous Auditing
New Business Models
Processes, their Electronization and their Tools
- Marketing and Advertising
- Production and Logistics (Supply Chain Management - SCM)
- E-Care
- Finance
  - The Measurement Process (Accounting)
  - The Assurance Process
  - Corporate Finance
- Human Resources
- Research and Development
Industries and their Continuing Evolution
- Bitable Products
- Retail
- Large Manufacturers
- Services
Implications for the Accounting Profession
Summary
Key Words
Review Questions
Discussion Questions
Cases

3. B2B PROCESS AND STRATEGIES

Introduction
- From B2C to B2B Using Corporate Nets
Corporate Nets
- Intranets
- Extranets
B2B
- Global Predictions
- Sector Predictions
- B2B Characteristics
  - Vertical and Horizontal Markets
  - Necessary Technology
  - New Processes and Necessary Technologies
  - Application Service Providers
  - Peer to Peer Models
  - Agents
Emerging B2B Problems
Electronic Markets
- Auto Industry
- Airlines
- Professional Services Firms
Strategy
- Exit Strategy
- The Business Plan of a Dotcom
- Parameters of Strategy
- Traditional Strategic Thinking and Core Competencies
- Low Cost Providers
- The Effects of Competition
- New Economy Thinking - Deconstructing the Value Chain
- Judo Strategy
- Corporate Strategic Plays
  - PacMan
  - Build Independently
  - Sub-divide and Conquer
  - Meet your enemies
- Free Play Strategies
A Schemata to Analyze e-Business Strategy
- What is the Source of Income?
- Size the Markets
- Identify and Assess the Existing Market
- e-Markets and New Plays
- What are the Cost Structures?
- Consider the Type of Product Sold
- Innovation along the Value Chain
Implications For The Accounting Profession
Summary
Key Words
Review Questions
Discussion Questions
Cases

4. ELECTRONIC COMMERCE AND THE ROLE OF INDEPENDENT THIRD-PARTIES

Introduction
Consulting Practices And Accountants' Independence
CPA Vision Project
New Assurance Services Identified By The AICPA
- The Elliott Committee And The Cohen Committee
  - Three Waves Of Electronic Commerce
  - Electronic Commerce Integrity and Security Assurance
  - Electronic Commerce Systems Reliability Assurance
  - Internal Control Framework
  - Competition
  - Risk Assessment Assurance
Impact Of Electronic Commerce On the Traditional Assurance Function
- Continuous Auditing
The COVC and Accounting Information Systems
- Sales and Marketing Activities
- Procurement Activities
- Production Activities
- Outbound Logistics
- Service
Third-Party Assurance Of Web-Based Electronic Commerce
- Categories of Concern
  - Security of Data
  - Business Policies
  - Transaction Processing Integrity
  - Privacy of Data
  - Systems Reliability
Trust in Electronic Relationships
- Definition of Trust
- The Trust Model and Its Components
  - Perceived Risk, Level of Trust, and Risk Taking Action
  - Outcomes and Future Levels of Perceived Trustworthiness
  - Third Party Assurance Contgracting
Web Site Seal Options
- Better Business Bureau 4
- Truste
- Veri-Sign
- BizRate
AICPA/CICA Webtrust Programs
- WebTrust Seal for Business-to- Consumer E-commerce Transactions
  - Business and Information Privacy Practices
  - Transaction Integrity
  - Information Protection
  - Report Issuance
- WebTrust Seal for On-line Privacy
- WebTrust Seal for Internet Service Providers (ISPs)
- WebTrust Seal for Certification Authorities
AICPA/CICA SysTrust Programs
Comparison of Seals
- Implications For The Accounting Profession
  - Skill Sets
  - Certified Information Technology Professional (CITP) Designation
  - Expansion of Assurance Services
  - Consulting & International Services
Summary
Key Words
Review Questions
Discussion Questions
Cases

5. THE REGULATORY ENVIRONMENT

Introduction
Cryptography Issues
- Domestic Use and the Import and Export of Cryptographic Products
- Domestic Use and Import Laws
- Export of Cryptomgraphic Products
- China
- Belarus, Kazakhastan, and Pakistan
Privacy Issues
- FTC's 2000 Privacy Online Report
- Children's Privacy Regulation
- Adults' Privacy Rights And The EU's Directive
Third-Paty Sharing/Selling of Data
Carnivore
Web Linking
- Defamation and Inappropriately Referencing a Linked Site
- Displaying Information Without Proper Referencing
- Linking Using Framing
- Linking Using Trademark In Keyword Meta Tags
- Unauthorized Display Of A Registered Trademark or Copyrighted
- Material
- Linking to Illegal Files
- Domain Name Disputes
- Similarly Named Companies Or Products
- Registering And Using A Competitor's Name
- Domain Names Registered And Held Hostage
Internet Sales Tax
- International Tax Issues
Electronic Agreements And Digital Signatures
- E-Sign
- UETA
- UCITA
  - International Initiatives
SPAM Mail
Online Actions and Content Filtering
Texas Shuts Down Ford's Pre-Owned Auto Site
Implications for the Accounting Profession
- Liability Exposure and Risk Assessment
- Expension of Legal Resources and Services
- Digital Signatures and Certificate
Summary
Key Words
Review Questions
Discussion Questions
Cases

6. EDI, ELECTRONIC COMMERCE AND THE INTERNET

Introduction
Traditional EDI Systems
- The Origin of EDI
- Non-EDI Systems
- VANs And Preestablished Trading Partners
- Partially Integrated EDI Systems
- Fully Integrated EDI Systems
- Benefits of EDI
- Data Transfer and Traditional EDI Standards
- Department of Defense Transaction Example
Financial EDI
EDI Systems And The Internet
- Security Concerns
  - Security of Data During Transmission
  - Audit Trails and Acknowledgements
  - Authentication
- Benefits of Web-Based EDI
- EDI Web Browser Translation Software
- XML and EDI
- XBRL and EDI
Insight's EDI And Internet Systems
- Real-Time EDI Inventory Links With Suppliers
- Integrated Delivery Links With Federal Express
- Web-Based Sales
Impact Of EDI-Internet Applications On The Accounting Profession
- Increased Complexity of Auditing through the Computer
  - Integrity and Reliance in the VANs

Increased Technological Skills of Smaller Accounting Firms

Summary
Key Words
Review Questions
Discussion Questions
Cases
References and Web Sites

7. RISKS OF INSECURE SYSTEMS

Introduction
Overview Of Risks Associated With Internet Transactions
Internet Associated Risks
- Risks To Customers
  - False or Malicious Web Sites
  - Theft of Customer Data from Selling
  - Agents and Internet Service Providers (ISP)
  - Privacy and the Use of Cookies
- Risks To Selling Agents
  - Customer Impersonation
  - Denial Of Service Attacks
  - Distributed Denial of Service Attacks
  - Data Theft
Intranet Associated Risks
- Sabotage By Former Employees
- Threats From Current Employees
  - Sniffers
  - Financial Fraud
  - Downloading Of Data
  - E-Mail Spoofing
Social Engineering
Risks Associated With Business Transaction Data Transferred Between Trading Partners

Intranets, Extranets And Internet Relationships
Data Interception

Message Origin Authentication
Proof Of Delivery
Message Integrity & Unauthorized Viewing Of Messages
Timely Delivery Of Messages

Risks Associated With Confidentially- Maintained Archival, Master File And Reference Data
Risks Associated With Viruses And Malicious Code Overflows
- Viruses
- Trojan Horses
- Hoaxes
- Buffer Overflows
Implications For The Accounting Profession
- Intranets and Internal Controls
- Internet and Internal Controls
- Web Site Assurance
Summary
Key Words
Review Questions
Discussion Questions
Cases Studies

8. RISK MANAGEMENT

Introduction
Control Weakness Vs. Control Risk
- Security Gaps
- Culture Management
- Excessively Tight Controls
Risk Management Paradigm
Disaster Recovery Plans
- Disaster Recovery Plan Objectives
  - Second Site Backup Alternatives
    - Mutual Aid Pact
    - Cold Site/Crate And Ship
    - Hot Site and Remote Mirroring
- Conducting A Dress Rehearsal
Implications For The Accounting Profession
Summary
Key Words
Review Questions
Discussion Questions
Cases Studies

9. INTERNET STANDARDS, PROTOCOLS AND LANGUAGES

Introduction
Standard Setting Issues And Committees
- ANSI
- UN/EDIFACT
- ANSI's ASC X12 Alignment Task Group Leading The Migration To UN/EDIFACT
Major Standard Setting Structures And Interfaces
Security Committees And Organizations
Security Protocols And Languages
- OSI
- TCP/IP
  - IP Addresses
    - Class A
    - Class B
    - Class C
    - Class D And Class E
    - IPv6
    - Domain Names
  - FTP And TELNET
  - NNTP
  - HTTP And HTTP-NG
  - SGML and HTML
  - XML
  - DOM And DHTML
  - XHTML
  - JAVA
  - Messaging Protocols
Basic Mail Protocols
- Security-Enhanced Mail Protocols
S-HTTP and SSL
- SET
- Mobile Commerce and the WAP Protocol
The Role Of Accountants In The Standard
- Setting Process
Summary
Key Words
Review Questions
Discussion Questions
Cases

10. CRYPTOGRAPHY & AUTHENTICATION

Introduction
Messaging Security Issues
- Confidentiality
- Integrity
- Authentication
- Non-Repudiation
- Access Controls
Encryption Techniques
- Symmetric Encryption Keys
  - Data Encryption Standard
  - Triple Encryption
  - Advanced Encryption Standard
  - Skipjack
  - RC2, RC4, RC5, and RC6
- Asymmetric Cryptography
- Public-Private Key-Pairs
- Digital Wrappers
- Elliptic Curve Cryptography
- Integrity Check Values And Digital Signatures
  - Integrity Check Value (Hashes)
  - Digital Signatures
- One Time Pads
- Good Encryption Practices
  - Password Maintenance
  - Key Length
  - Key Management Policies
  - Compressed Files
  - Message Contents
Public Key Infrastructures
- Public Certification Authorities (Scenario A)
- Private or Enterprise Certification Authorities (Scenario B)
- Hybrid Public And Private Certification Authorities (Scenario C)
Key Management
Additional Authentication Methods
Additional Non-Repudiation Techniques
Implications For The Accounting Profession
- Confidentiality
- Message Integrity
- Authentication
- Non-repudiation
- Access Controls
- Internal and Risk Analysis
Summary
Appendix A - The RSA Algorithm
Appendix B - XOR Function
Key Words
Review Questions
Discussion Questions
Cases

11. FIREWALLS

Introduction
Firewall Defined
TCP/IP
Open Systems Interconnect (OSI)
Components Of A Firewall
Typical Functionality Of Firewalls
- Packet Filtering
- Network Address Translation
- Application-Level Proxies
- Stateful-Inspection
- Virtual Private Networks
- Real-Time Monitoring and Intrusion Detection Systems
- Personal Firewalls
Network Topology
- Demilitarized Zone
Securing The Firewall
- Policy
  - Network Security Access Policy
  - Firewall Design Policy
- Administration
- Services
  - Telnet And FTP Security Issues
  - Finger Service Security Issues
- Internal Firewalls
- Authentication
- Operating System Controls
Factors To Consider In Firewall Design
In-House Solutions Vs. Commercial Security Software
Limitations of the Security Prevention Provided By Firewalls
Implications For The Accounting Profession
Penetration Testing & Risk Exposure
Provider of Network Solutions
Forensic Accounting and Intrusion Investigation
Summary
Key Words
Review Questions
Discussion Questions
Cases

12. ELECTRONIC COMMERCE PAYMENT MEDIUMS

Introduction
The SET Protocol
- SET Vs. SSL
- Version 1.0 and its Enhancements
- Payment Gateway
- Certificate Issuance
- Certificate Trust Chain
- Cryptography Methods
- Dual Signatures
- The SET Logo
- Compliance Testing
- Status Of Software Implementations
Magnetic Strip Cards
Smart Cards
- Smart Cards and Mobile Commerce
Electronic Checks
- Consumer-toConsumer Electronic Check Services
Disposable Credit Card Numbers
Electronic Cash
Implications For The Accounting Profession
Audit Implications
Electronic Bill Presentment and Payment Systems
Summary
Key Words
Review Questions
Discussion Questions
Cases

13. INTELLIGENT AGENTS

Introduction
Definition Of Intelligent Agents
Capabilities Of Intelligent Agents
- Level Of Agent Sophistication
Agent Societies
Intelligent Agents & Electronic Commerce
- The Online Information Chain
  - Push Technology & Marketing
  - Pull Technology And Demands Of Information And Services
- New Geographical Markets
- Business-To-Business Transaction Negotiation
Limitations Of Agents
Implications For The Accounting Profession
- Continuous Reliability Assurance
- Agents and Security
Summary
Key Words
Review Questions
Discussion Questions
Cases

14. WEB-BASED MARKETING

Introduction
The Scope of Marketing
Business, Marketing, and Information Technology Strategy Congruence
The Four Ps Applied to Internet Marketing
- Product
- Pricing
- Place (Distribution)
- Promotion
The Fifth "P" - Personalization
- Toffler's Powershift - Knowledge as Power
- Marketing Implications of the Consumer Power Shift
  - Building Relationships Through Database Marketing
  - Customer-Oriented Marketing- Emergence of the Personalized Transaction Domain
- Customer-Oriented Marketing - The Relentless Search for Value
Internet Marketing Techniques
- Passive Providers of Information
- Search Engine & Directory Registration
- Solicited, Targeted E-mail
- Interactive Sites
- Banner Advertising
- Off-Line Advertising
- Unsolicited, Targeted E-Mail
- Spam Mail
On-Line Advertising Mechanisms
- Directories
- Search Engines
  - Keywords & Meta Tags, and Frequency of words
- Banners
- Sponsorships
- Portals and Informediaries
- On-line Coupons
Web Site Design Issues
- Page Loading Efficiency
- Simplicity
- Use the Space Wisely
- Create a Reason to Return
- Framing
- Tables and Fonts
- Graphics
  - Interlaced Graphics
  - GIF vs. JPEG Files
- Purchasing Information
- Tracking Data
Intelligent Agents and their Impact on Marketing Techniques
Implications for the Accounting Profession
Summary
Key Words
Review Questions
Discussion Questions
Cases