ENVS 5061 Midterm: In matters relating to online shopping or selling

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wamuyugitau

3 Nov 2021

School

York University

Department

Environmental Studies

Course

ENVS 5061

Professor

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Document Summary

In matters relating to online shopping or selling, e-commerce websites keep client data, which consist of personal identifying information, bank accounts, as well as credit card information. With no appropriate security measures put in place by the websites, many customers are at risk of losing their money, and information due to hackers from outside sources. Conferring to a study performed by lexisnexis on e-commerce dishonesty, online retail stores are more susceptible to counterfeit transactions as compared to physical retail shops (theobald, Besides, fraudsters are turning out to be cannier as technology advances. Due to this reason, i do agree there are additional risks when carrying out online shopping from a mobile device*. Other than that, there could be additional causes such as: Unsecured network connection - when online shopping is performed by use of public wi-fi, data can be altered or stolen since the network tends to be unsecured.

Related Questions

1. Some observers argue that the coming of electronic commerce on the Internet signals the arrival of a new era of global marketing, as online retailers of everything from books and music to soft- ware and outdoor gear make it possible to buy products without visiting stores. Assess how far this development has come by visiting a Web site for a retailer offering online shopping and see what the limits are on which countries they can ship to.

Kara and Scott Baker own a small retail company, BasicRequirements, with one store located in a small college town and awebsite through which customers can make purchases. The store sellstraditional but up-to-date clothing for young women such astee-shirts, jeans, chinos, and skirts. The store has been open for10 years, and the owners added the online shopping capability justlast year. Online business has been slow, but Kara and Scottbelieve that as student customers graduate from the university theywill use the online site to continue to have access to theirfavorite store from their college days.The storeâs website has manyfeatures. It classifies clothing by type, and customers can viewitems in various colors. To purchase an item, the user clicks onthe icon depicting the desired product and adds it to an individualonline shopping basket. The customer can view the basket and make apurchase at any time while browsing the site. When checking out atthe site, a new customer must first register, providing billing andshipping information, as well as credit card data. Returningcustomers log in with the identification code and password theycreated when they registered. They also use that method to check onan order status. If a customer forgets their login information,they can simply click on a link to have it emailed to them. Once auser registers, Basic Requirementsâ system will automatically addtheir email address to a file that they use to regularly send outemails about sales and other promotions. Kara and Scott areconcerned about internal controls in their business. Theyespecially worry because they know that their web access createssome special risks. They have asked one of their customers who isan accounting student at the university to evaluate the reliabilityof their information system with respect to security, availability,and privacy.

1. Identify two security, availability, and privacy risks thatBasic Requirements faces.

2. For each risk identified above, describe two internalcontrols Basic Requirements should use to protect against theserisks.

3. The accounting student who is evaluating the reliability ofBasic Requirementsâ information system is interested in becoming anIT auditor. Describe some of the specific actions an IT auditorwould take to verify that Kara and Scott have adequate controls inplace concerning privacy.

Grady and Associates performs a variety of activities related to information systems and e-commerce consulting in Toronto, Canada. The firm, which bills $125 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $45. Selected information follows.

- Billable hours to clients for the year totaled 5,000, consisting of information systems services, 3,100; e-commerce consulting, 1,900.

- Administrative cost of $342,000 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $180,000; in-house computing, $136,400; and miscellaneous office charges, $25,600.

A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

	Information Systems Services		E-Commerce Consulting		Total
Number of clients		200		50		250
Number of computer hours		2,600		1,800		4,400
Number of client transactions		400		600		1,000

Required:

2. Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firmâs information systems and e-commerce activities, expressing your answer both in dollars and as a percentage of activity revenue.

3. Assume that the firm uses activity-based costing. Determine the profitability of the firmâs e-commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue.

4. Jeffrey Grady, one of the firmâs partners, doesnât care where his professionals spend their time because, as he notes, âmany clients have come to expect both services and we need both to stay in business. Also, information systems and e-commerce professionals are paid the same hourly rate.â Should Gradyâs attitude change?

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ENVS 5061 Midterm: In matters relating to online shopping or selling

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