What privacy concerns might arise from the use of biometric authentication techniques? What about the embedding of radio frequency identification (RFID) tags in products such as clothing? What other technologies might create privacy concerns?

Alpha Omega Electronics (AOE) manufactures a variety of inexpensive consumer electronic products, including calculators, digital clocks, radios, pagers, toys, games, and small kitchen appliances. Like most manufacturers, AOE does not sell its products directly to individual consumers, but only to retailers. Figure 12-1 shows a partial organization chart for AOE.

Linda Spurgeon, president of AOE, called an executive meeting to discuss two pressing issues. First, AOE has been steadily losing market share for the past three years. Second, cash flow problems have necessitated increased short-term borrowing. At the executive meeting, Trevor Whitman, vice president of marketing, explained that one reason for AOE’s declining market share is that competitors are apparently providing better customer service. When Linda asked for specifics, however, Trevor admitted that his opinion was based on recent conversations with two major customers. He also admitted that he could not readily identify AOE’s 10 most profitable customers. Linda then asked Elizabeth Venko, the controller, about AOE’s cash flow problems. Elizabeth explained that the most recent accounts receivable aging schedule indicated a significant increase in the number of past due customer accounts. Consequently, AOE has had to increase its short-term borrowing because of delays in collecting customer payments. In addition, the Best Value Company, a retail chain that has been one of AOE’s major customers, recently went bankrupt. Elizabeth admitted that she is unsure whether AOE will be able to collect the large balance due from Best Value.

Linda was frustrated with the lack of detailed information regarding both issues. She ended the meeting by asking Elizabeth and Trevor to work with Ann Brandt, vice president of information systems, to develop improved reporting systems so that AOE could more closely monitor and take steps to improve both customer service and cash flow management. Specifically, Linda asked Elizabeth, Trevor, and Ann to address the following issues:

4. How could AOE improve its cash collection procedures?

The AOE case shows how deficiencies in the information system used to support revenue cycle activities can create significant problems for an organization. As you read this chapter, think about how a well-designed information system can improve both the efficiency and effectiveness of an organization’s revenue cycle activities.

Obtain a copy of Generally Accepted Privacy Principles from the AICPA's website (www.aicpa.org). Use it to answer the following questions: 3. In terms of the principle of choice and consent, what does GAPP recommend concerning opt-in versus opt-out?

Download a hash calculator from the course website (or use one provided by your instructor). Use it to create SHA-256 (or any other hash algorithm your instructor assigns) hashes for the following:

a. A document that contains this text: "Congratulations! You earned an A+"

b. A document that contains this text: "Congratulations! You earned an A-"

c. A document that contains this text: "Congratulations! You earned an a-",

d. A document that contains this text: "Congratulations! You earned an A+" (this message contains two spaces between the exclamation point and the capital letter Y).

e. Make a copy of the document used in step a, and calculate its hash value.

f. Hash any multiple-page text file on your computer.

Alpha Omega Electronics (AOE) manufactures a variety of inexpensive consumer electronic products, including calculators, digital clocks, radios, pagers, toys, games, and small kitchen appliances. Like most manufacturers, AOE does not sell its products directly to individual consumers, but only to retailers. Figure 12-1 shows a partial organization chart for AOE.

Linda Spurgeon, president of AOE, called an executive meeting to discuss two pressing issues. First, AOE has been steadily losing market share for the past three years. Second, cash flow problems have necessitated increased short-term borrowing. At the executive meeting, Trevor Whitman, vice president of marketing, explained that one reason for AOE’s declining market share is that competitors are apparently providing better customer service. When Linda asked for specifics, however, Trevor admitted that his opinion was based on recent conversations with two major customers. He also admitted that he could not readily identify AOE’s 10 most profitable customers. Linda then asked Elizabeth Venko, the controller, about AOE’s cash flow problems. Elizabeth explained that the most recent accounts receivable aging schedule indicated a significant increase in the number of past due customer accounts. Consequently, AOE has had to increase its short-term borrowing because of delays in collecting customer payments. In addition, the Best Value Company, a retail chain that has been one of AOE’s major customers, recently went bankrupt. Elizabeth admitted that she is unsure whether AOE will be able to collect the large balance due from Best Value.

Linda was frustrated with the lack of detailed information regarding both issues. She ended the meeting by asking Elizabeth and Trevor to work with Ann Brandt, vice president of information systems, to develop improved reporting systems so that AOE could more closely monitor and take steps to improve both customer service and cash flow management. Specifically, Linda asked Elizabeth, Trevor, and Ann to address the following issues:

3. How can AOE improve its monitoring of credit accounts? How would any changes in credit policy affect both sales and uncollectible accounts?

The AOE case shows how deficiencies in the information system used to support revenue cycle activities can create significant problems for an organization. As you read this chapter, think about how a well-designed information system can improve both the efficiency and effectiveness of an organization’s revenue cycle activities.

Upon your request (with proper verification of your identity) should organizations be required to delete personal information about you that they possess?

The department of taxation in your state is developing a new computer system for processing individual and corporate income-tax returns. The new system features direct data input and inquiry capabilities. Taxpayers are identified by social security number (for individuals) and federal tax identification number (for corporations). The new system should be fully implemented in time for the next tax season.

The new system will serve three primary purposes:

1. Tax return data will automatically input into the system either directly (if the taxpayer files electronically) or by a clerk at central headquarters scanning a paper return received in the mail.

Obtain a copy of Generally Accepted Privacy Principles from the AICPA's website (www.aicpa.org). Use it to answer the following questions: 2. How many categories of personal information exist? Why?

Alpha Omega Electronics (AOE) manufactures a variety of inexpensive consumer electronic products, including calculators, digital clocks, radios, pagers, toys, games, and small kitchen appliances. Like most manufacturers, AOE does not sell its products directly to individual consumers, but only to retailers. Figure 12-1 shows a partial organization chart for AOE.

Linda Spurgeon, president of AOE, called an executive meeting to discuss two pressing issues. First, AOE has been steadily losing market share for the past three years. Second, cash flow problems have necessitated increased short-term borrowing. At the executive meeting, Trevor Whitman, vice president of marketing, explained that one reason for AOE’s declining market share is that competitors are apparently providing better customer service. When Linda asked for specifics, however, Trevor admitted that his opinion was based on recent conversations with two major customers. He also admitted that he could not readily identify AOE’s 10 most profitable customers. Linda then asked Elizabeth Venko, the controller, about AOE’s cash flow problems. Elizabeth explained that the most recent accounts receivable aging schedule indicated a significant increase in the number of past due customer accounts. Consequently, AOE has had to increase its short-term borrowing because of delays in collecting customer payments. In addition, the Best Value Company, a retail chain that has been one of AOE’s major customers, recently went bankrupt. Elizabeth admitted that she is unsure whether AOE will be able to collect the large balance due from Best Value.

Linda was frustrated with the lack of detailed information regarding both issues. She ended the meeting by asking Elizabeth and Trevor to work with Ann Brandt, vice president of information systems, to develop improved reporting systems so that AOE could more closely monitor and take steps to improve both customer service and cash flow management. Specifically, Linda asked Elizabeth, Trevor, and Ann to address the following issues:

2. How could AOE identify its most profitable customers and markets?

The AOE case shows how deficiencies in the information system used to support revenue cycle activities can create significant problems for an organization. As you read this chapter, think about how a well-designed information system can improve both the efficiency and effectiveness of an organization’s revenue cycle activities.

Cost-effective controls to provide confidentiality require valuing the information that is to be protected. This involves classifying information into discrete categories. Propose a minimal classification scheme that could be used by any business, and provide examples of the type of information that would fall into each of those categories.

What risks, if any, does offshore outsourcing of various information systems functions pose to satisfying the principles of confidentiality and privacy?

Obtain a copy of Generally Accepted Privacy Principles from the AICPA's website (www.aicpa.org). Use it to answer the following questions: 15. What is the relationship between GAPP principles 9 and 10 ?

Obtain a copy of Generally Accepted Privacy Principles from the AICPA's website (www.aicpa.org). Use it to answer the following questions: 14. What does GAPP principle 8 state concerning the use of encryption?

Obtain a copy of Generally Accepted Privacy Principles from the AICPA's website (www.aicpa.org). Use it to answer the following questions: 13. According to GAPP principle 7 , what should organizations do if they wish to share personal information they collect with a third party?