Accounting 307 Final

Front 1

4 categories of hardware

Back 1

input processing storage output

Front 2

Input devices

Back 2

the starting point for accounting data collection

Front 3

Data transcription

Back 3

converting source documents into computer readable form, either automatically or manually.

Front 4

Automatic input methods

Back 4

it helps ensure accuracy, timly and cost effective ways of gathering and inputing accounting data.

Front 5

Bar Code reader

Back 5

reads the bar code attached to a product. Barcode includes price and quantity. It can be used to reduce input time and error. centralize price information. you can change the price on the computer instead of all of the products manually.

Front 6

Magnetic Ink Character Recognition

Back 6

used by banks to automatically read the magnetically coated characters imprinted at the bottom of checks. Only used by banks.

Front 7

Bank routing number

Back 7

First group of numbers under a check. machine readible

Front 8

Optical Character Recognition

Back 8

Uses optical readers and light sensing mechanisms and laser technology to recognize characters. Scantrons, preprinted bills, airline tickets.

Front 9

Plastic cards with Magnetic strips

Back 9

Identification, credit card number, balance, other information.

Front 10

Microcomputer input devices

Back 10

Keyboard mouse, trackpad
Computer pen, iPad PDA.

Front 11

Biometric scanner

Back 11

used to autotenitcate users on physical characteristics. several ways to authenticate a users. based on who you are. it can either be a behavioral system(signature/voices) physiological (fingerprints, iris, retina)

Front 12

iris scan/finger print

Back 12

iris scanners are more popular, they have different vein patterns on the same person.

Front 13

Enrollment

Back 13

process of creating digital templates for individuals. Sample from individual to be authenticated, to the digital template, they match, you are authenticated, if they dont.

Front 14

Bar code vs Radio Frequency Identification

Back 14

Barcodes are attached to items. Rfid tags are embedded into the product. RFID can be used to monitor how many items that are inside of a box. for barcodes you have to hold the scanner close.

Front 15

UPS/FedEx

Back 15

They use RFID technology as things are movign to the wearhouse without opening obxes.

Front 16

EZ Pass System

Back 16

Toll booths in Toll Roads. Magnet thing attached to the car. there is an automatic charge wth each zap.

Front 17

process data

Back 17

converting data into meaningful information.

Front 18

central processing unit (CPU)

Back 18

processor.
Controlunit and aritmetic logic unit (ALU)

Front 19

ALU

Back 19

performs all the calculations. performs the aritmetic applications such as addition/subtraction. Logical tasks as comparing 2 numbers

Front 20

Control unit

Back 20

Used for supervising the activities in the ALU. Can be used to coordinate the calculations or operations of the ALU unit.

Front 21

RAM

Back 21

Random Access Memory. The more ram the faster. The main location for temporary storage.

Front 22

what needs to happen for a software program to run?

Back 22

it must be first loaded into the computer’s RAM, then transferred to and processed by the ALU, as directed by the control unit.

Front 23

Bottleneck

Back 23

represented by RAM

Front 24

Cache Memory

Back 24

Very high-speed memory that stores data and insturctions needed by the CPU.

Front 25

Magnetic Disk

Back 25

Large Storage Capcities
Direct access

Front 26

Flash memory

Back 26

Flash (usb) 128-256GB
PCMCIA memory cards used with lap

Front 27

Solid state technology

Back 27

No moving parts. Moves faster, more efficient.

Front 28

PCMCIA

Back 28

memory ccards used with laptops

Front 29

DVD

Back 29

More memory than a cd with DUAL LAYERS

Front 30

Data Communications

Back 30

Transmitting Data to and from different locations over a network.

Front 31

Wired Communications Channels

Back 31

Twisted pair wire
Coaxial Cables
Fiber Optics

Front 32

Twisted Pair Wire

Back 32

Copper wire, Twisted to enhance the signal transmission

Front 33

Coaxial Cables

Back 33

Used for cable television, capable of far higher transmission speeds

Front 34

Fiber Optic cable

Back 34

Carry only digital signals.
Very high speeds in light pulses
HIgher bandwith and less interference

Front 35

Wireless

Back 35

Microwaves
Satellites

Front 36

MIcrowaves

Back 36

High frequency radio waves that travel along a line of sight path.
Relayed via repeater stattions.
Very high bandwith, it carries over half of television and telephones in the u.s.

Front 37

Satellites

Back 37

Radio signals are sent from a ground stations. Much longer geographical distance, and leasing time can be very expensive

Front 38

Infared transmission

Back 38

Remote control. Can only travel a very short distance. cannot penetrate objects

Front 39

Communcation devices

Back 39

Attached to a computer system, can be used to convert signals back and forth to convert signals from analog to digital

Front 40

Modem

Back 40

Modulator demodulator
Converts at 56k transmission. COnverts digital signals into analog for transmission over phone lines.

Front 41

DSL

Back 41

Digital Subscriber lines.
Alternative to ISDN. Higher transmission speed to ISDN so it replaced it.
downloading (uploading) speeds up to 6 mbps (384 kbps). 

Front 42

ISDN

Back 42

Integrated Services Digital Network
Both use telephone lines. The Telephone line in ISDN carries both analog and digital signals. One line is for voice, and the other one is for digital data. Requires proximity to phone company switching station.

Front 43

Cable Modem

Back 43

speeds up to 15 mbps for downloading and up to 1 mbps for uploading

Front 44

LAN

Back 44

Local Area Network
The Mihalo college has a LAN network. With servers, computers printers and computer files.
most LANs cover a single or several buildings.
Can purchase softwre for one computer and have it used for all the computer. Save software costs

Front 45

WAN

Back 45

Wide Area Network.
Linking Several LANs Together.
Internet is the Largest WAN in the world. It links all the local area networks together in the world

Front 46

Client/Server community

Back 46

The most important archetecture in a network environment Three interacting components
Presentation: View
Application-logic: processes reqeusts
Data Management: database query and updates.

Front 47

Client

Back 47

A computer that requests the service

Front 48

Service

Back 48

A computer that provides the service.

Front 49

Presentation

Back 49

The users view of the system. Handles the user interface. Web browser, the websites are PRESENTED on a web browser

Front 50

Application-logic layer:

Back 50

server side. You search for something on amazon.com. YOur search request goes to the application logic layer of the amazon server. The application layer recieves the request and it forwards this request to the database

Front 51

Data Management Layer

Back 51

Database. Has all the information and updates. Relevent information is retreieved from this layer and given to the presentation layer of the website.

Front 52

Where did the internet evolve from

Back 52

A variety of university and government-sponsored computer networks built largely for reserach.

Front 53

IP ADDRESS

Back 53

Each computer connected to the internet has unique internet address.

Front 54

74.xxx.xx.xx

Back 54

Class Number

Front 55

xx.125.xx.xx

Back 55

Organization Number

Front 56

xx.xxx.95.xx

Back 56

Computer group

Front 57

xx.xxx.xx.99

Back 57

Specific computer.

Front 58

Domain Name

Back 58

URL. Makes things much easier, it is translated into an ip address.

Front 59

Translation of an ip address.

Back 59

Example: www.google.com =74.125.95.99

Front 60

Three levels of domain names

Back 60

1st .com, Org Net EDU GOV
2nd site name
3rd specific computer.

Front 61

TCP/IP

Back 61

Packet switching technology to transmit data.
Example when you send an email, it is broken into packets, each packet is sent into different routes, when it arrives to the destination it is reassembled.

Front 62

Why do packets have to switch?

Back 62

If there was a nuclear attack in SF you can still send email because it can travel around it.

Front 63

Protocols to achieve packet switching

Back 63

TCP protocol. Rules and procedures that govern the process of data transmission over the internet. Protocol divides file into packets and the methods for reassembling the original file at the destination.

Front 64

IP

Back 64

Specifies the structure of the packets and routing path. To determine how each packet is routed through the internet.

Front 65

TCP

Back 65

How files are broken down into packets. How packets are sent into the internet.

Front 66

Intranets

Back 66

Only accessible, by authorized employees.

Front 67

Extra net

Back 67

All employees can access plus some selected users outside of the corporation. Such as authorized suppliers and customers.

Front 68

Virtual Private Network

Back 68

ONLY authorized users can access this. A private network that is developed based on a public network(internet). Private network within a larger public network.

Front 69

How to set up a VPN.

Back 69

1. Create private communication channels.
2. Authenticating all users before permitting any data transmission
3. encrypting all data transmission.

Front 70

Electronic Commerce

Back 70

buying/selling goods and services electronically.

Front 71

Internal Control

Back 71

Describes the policies, plans and procedures implemented by a firm to
1. safeguard assets
2. check the accuracy and reliability of accounting data
3. promote operational efficiency
4. to encourage adherence to prescribed managerial policies.

Front 72

3 types of controls

Back 72

Preventive
Detective
Corrective

Front 73

Components of Internal Control

Back 73

1. Control Environment
2. Risk Assessment
3. Control Activities
4. Information and Communication
5. Monitoring

Front 74

The Control Environment

Back 74

Establishes the tone of a company
Influences the control awareness of the employees

Front 75

Control Environment Factors

Back 75

Managment philosophy and operating style
The integrity, ethical values and competence of employees
Assignment of authority and responsibility.
The attention and direction provided by the board of directors

Front 76

Corporate Governance

Back 76

Managing an organization in a fair, transparent, and accountable manner to protect the interests of all the stakeholder groups.

Front 77

Example of a Control Environment

Back 77

Employee training programs that inform new hires about the company's various policies, outline individual responsibilities and explain how to perform duties efficiently.

Front 78

Risk Assessment

Back 78

The purpose of risk assessment is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs.

Front 79

The more liquid the asset

Back 79

the greater the risk of its misappropriation. Stronger controls are needed for increased risks.

Front 80

Cost-Benefit Analysis

Back 80

used to determine whether the cost to implement specific control procedure is beneficial enough to spend the money.

Front 81

Batch totals

Back 81

1. financial control totatl
2. record count
3. Hash total

Front 82

Financial control total

Back 82

sums a field that controls dollar amounts.

Front 83

Record count

Back 83

sums the number of transactions

To make sure all transactions have been acounted for and there are no duplicates.

Front 84

Hash Total

Back 84

non-financial numeric field.
Sales order: Sales order #s
Meaningless number.

Front 85

How does hash total work.

Back 85

You calculate 1,2,3,4,5...100transactiosn and you get 5050. if the number is wrong then you can have another degree of prevention of processing errors.

Front 86

Audit trail

Back 86

Validating processing results including source documents, transaction listing and activity listing

Front 87

Transaction listing

Back 87

a record of all successful transactions.

Front 88

Output controls

Back 88

Regulate the distribution and minimize the loss, stealth or misdirection of printed output.

Front 89

For the application controls to work

Back 89

the general controls have to be strong for the application control to work.

example strong validation rules without password protection. NO point.

Front 90

Information Technology Auditing

Back 90

evaluationg the computers role in achieving audit objectives and control objectives

Front 91

Control Objectives:

Back 91

Security
Availability
Processing Integrity
Online privacy and confidentiality.

Front 92

INternal auditor

Back 92

Carried out by companies own employees
1. employees follow company policies/procedure.
2. evaluate internal controls
3. operational efficiency and effetivness. evaluate performance to each dept. Make recommendations to each dept.

Front 93

External Auditing

Back 93

CPA firms.
internal control audit.
financial audit: financial statement audit. issue 2 reports 1. internal control report 2. independent opinion about financial statements vs. company performance.

Front 94

Fraud audit

Back 94

forensic accounting: prevents and detects fraud.

Front 95

Overlapping areas in external/internal

Back 95

internal auditing evaluate internal control on a regualar basis, the results will be used by external auditors.

Front 96

IT auditing

Back 96

3 main steps:
1. prelim evaluation of system
2. testing the control procedures
3. substantive tests of transactions and balances.

Front 97

Prelim evaluation

Back 97

decides whether the computer system is worthy of an audit of internal controls.

Front 98

Testing control procedures

Back 98

Audit of the information system. the auditor will make a detailed anaylsis of general and application controls
Compliance testing

Front 99

Complinace testing

Back 99

ensure that the controls are in place and work as prescribed

Front 100

Substantive tests of transactions and account balances.

Back 100

Strong controls>fewer substantive tests
Weak Controls> more substantive tests.

Front 101

substantive test

Back 101

extra tests of internal controls depending on how strong the system is. Randomly select 100/1000 A/R transactions. call the customers to confirm the transactions.

Front 102

Threats

Back 102

errors and irregularities facing the AIS.

Front 103

Risk Based Audit Approach

Back 103

1.Determine the threats
2. Systems review
3. Evaluating the control procedures within the AIS
4. Evaluate Weakness.

Front 104

B2B Transactions

Back 104

Vendor and Business.

Front 105

B2C Transactions

Back 105

Between Business and End User consumer.

Front 106

EDI Electronic Data INterchange

Back 106

allows organizations to transmit stamdard business documents over high speed communications channels. Instead of printing out a sales invoice and mailing it. both company set up an edi system and they send the documents over the internet.

Front 107

E payment service

Back 107

Intermediary. Collects money from the buyer and sends the moey to the seller. the major benefit of this service is that you only provide your credit card information to the e payment service, not the seller.

Front 108

Credit card vs Epayment

Back 108

If you use a credit card you have to furnish your personal information to 100 different people while if you use an epayment service you just use one. They also verify your information, to help prevent internet fraud.

Front 109

Advantages of EDI

Back 109

Streamlines the Business process. Exchange is done more quickly and efficiently.
EDI eliminates the paperwork.
Saves cost.

Front 110

2 types of issues for an internet presence for companies

Back 110

1. Privacy issues
2. Security issues.

Front 111

Privacy issues

Back 111

Companies are responsible for protecting the privacy of personal information
Companies collect and use their customers’ personal information in compliance with their privacy policies

Front 112

Security issues

Back 112

safeguard an organization’s electronic resources and limit access to authorized users. Not unauthorized, because the company will have information from customers.

Front 113

Hacking

Back 113

accessing and using computer systems without permission, usually by means of a personal computer and telecommunication network

Front 114

What techniques are used to computerized Ais

Back 114

Auditing around the computer, Auditing through the computer.

Front 115

Auditing around the computer

Back 115

examit the inputs and outputs on a sample basis.
Test transactions occur. The systems outputs are compared to the hand done outputs done by the auditor. If there is descrepencies, then there is an output.

Front 116

Major drawback from auditing around the computer

Back 116

The tests are done with the normal transactions. Exceptional situations are not included.

Front 117

Auditing Through the Computer

Back 117

Test computer programs, and internal controls built within.
Test a variety of general controls.

Front 118

Test Data

Back 118

Test transactions are designed by the auditor, they contain errors. This is to tetst how well the internal controls.

Front 119

Integrated Test Facility

Back 119

More comprehensive test technique that audits an AIS in an operational setting.
Establish a fictitous entity such as a dpetment branch, customer, or employee.
entering artificial transactions for that entity
observing how these transactions are processed.

Front 120

Parallell simulation

Back 120

Each transaction is tested twice. once by the simulation program and once by the client program.

Front 121

Simulation program

Back 121

created by the auditor, he has to know how the clients computer system works. it is so costly. most CPA firms don't do this.

Front 122

Which is most cost prohibitive computer program audit?

Back 122

Parallel simulation

Front 123

Program Change control

Back 123

if a company wants to make changes to a program, it is subject to stringent program change controls.
All program changes must be documented, costed and more importantly, authorized and thoroughly tested.
The documentation must match the production version of a program.

Front 124

Program compariosn

Back 124

Guards against unauthorized program tampering by performing certain totral tests of program authonticity

Front 125

Test of length

Back 125

compare

Front 126

Comparison program

Back 126

2 programs are tested line by line.
minor changes can be detected

Front 127

Review of system software

Back 127

generates outputs athat are important for monitoring a companys computer system.

Front 128

Logs

Back 128

record the use of computer resources

Front 129

The IT auditor needs to verify

Back 129

the parameters of access control software are set appropriately and make sure the IT staff are using tem appropriately

Front 130

Parameters of access control

Back 130

defining the scope of each Login Name and Password.
You should only be allowed to have access to programs that you are entitled. Your access privileges should have a parameter of accounting software. No need for accounting people to access manufacturing applications.

Front 131

Inactivity

Back 131

when you have an employee that is fired, he should have no access to the computer. Inactivity will be detected and will find an account that has been inactive for a several months. the best explanation is that the employee has been terminated.

Front 132

Logging in at odd hours

Back 132

considered odd activities, and recorded in a log file. it will be recorded, and auditors can review these files to make sure they dont represent fraudulent activities. `

Front 133

Continuous Auditing

Back 133

Auditing can be performed even when the auditor is not around.

Front 134

embedded audit module

Back 134

Captures transaction that are under a specific criteria in a clients system. Specific requirements, #of hours worked is greater than 40, then it would be treated as abnormal, so it is recorded. It is then printed out and given to the auditor for a special view.

Front 135

Transaction Tagging

Back 135

Some transactions will be tagged so they can be recorded as they pass through the AIS. IF the auditor is interested in internal controls on the payroll. he selects employees (lowmedand highsalaries) how the payroll system processes the transactions. they are tagged.

Front 136

Snapshot technique

Back 136

Preprogramed to take pictures of transactions and their general ledger files before and after specified processing points. The before and after pictures are compared. The last processing point is to update the customer balance.

Front 137

Continuous and intermittent simulation

Back 137

insert module into clients program, or some transactions will be generated twice between clients and auditors program.
if descrepencies exist, it is posted in a log file. Serious discrepencies are notified. it can stop updates if it is serious.
Similar to program simualtion.

Front 138

Assurance vs Audit

Back 138

Assurance is a broader concept. the information is not limited to financial information, it can refere to relatibiltiy and accuracy of infosystem. it can refer to efficiency, security. anykinds of information. Auditing involves just financial information.

Front 139

Webtrust

Back 139

Type of Assurance about relaiblitiy of information systems. It deals most with online transactions. some of the smaller merchants need to have this because it is a seal of trust. The merchants displays this seal on their website. so the consumer is more comfortable about their system.

Front 140

Systrust

Back 140

Reliability of the information system.

Front 141

Hard copy output options

Back 141

Printers:
Dot Matrix
Ink Jet
Laser printer

Front 142

Dot matrix printers:

Back 142

mainly used for generating multiple copies simultaneously.

Front 143

Ink Jet printers:

Back 143

higher print quality and speed

Front 144

Laser printers:

Back 144

superior print quality and much faster output speed

Front 145

2 types of Output Devices

Back 145

Hard Copy
Soft Copy

Front 146

Soft copy output options

Back 146

Video output (video screen displays)
Examples: computer monitor, stadium scoreboards, airport display screens
CRT and LCD (flat panel) monitors
HDTV

Front 147

What resolution is HDTV?

Back 147

in the range of 1920x1080 pixels

Front 148

Computer Software

Back 148

Instructions that the computer hardware can execute.

Front 149

2 categories of Computer software

Back 149

Operating Systems
Application Software

Front 150

Operating systems

Back 150

a set of software programs that runs the computer itself and the application programs designed for it.

Mac OS, Windows Vista, Linux

Front 151

Application Software

Back 151

Programs written for performing the job-specific tasks. helps end users such as accountants perform the tasks specific to their jobs or relevant to their personal needs.

Front 152

Utility Programs

Back 152

Come with operating systems help users perform such tasks as copying files, converting files from one format to another, compressing files, system diagnostics and building disk directories.

Front 153

Single user operating systems

Back 153

Windows xp, Mac OS

Front 154

Cell phone operating systems

Back 154

Windows mobile, blackberry, bluetooth, Palm OS and Symbian OS

Front 155

Graphical user interfaces (GUIs)

Back 155

menus, icons, and other graphics elements(instead of instruction commands) to identify system components and launch processing programs

Front 156

What is the first piece of software loaded into primary memory when the computer powers up?

Back 156

The operating system

Front 157

Application (end user) programs

Back 157

designed to work with a particular operating system.

Front 158

How does the operating system coordinate Application Programs.

Back 158

The operating system coordinates those programs input an output tasks, by managing the pieces of a large application program that is too large to fit entirely in RAM

Front 159

Types of Application Software

Back 159

Personal productivity software
Accounting software
Communication software.
Project management software
computer aided design(CAD) software

Front 160

Project management software

Back 160

for coordinating and tracking the events resources and costs of large projects such as construction projects or office moves

Front 161

computer-aided design (CAD) software

Back 161

for designing consumer products, clothing, automobiles, or machinery.

Front 162

Presentation graphics software

Back 162

for creating slides and other presentations.

Front 163

Personal Productivity software

Back 163

Word processing (e.g. Microsoft Word)
Spreadsheet software (e.g. Microsoft Excel)
Database software (e.g. Microsoft Access)
Presentation software (e.g. Microsoft PowerPoint)
Personal finance software (e.g. Quicken)
Computer-aided design (CAD)

Front 164

Accounting Software

Back 164

Small business, midrange, ERP

Front 165

Reasons why IT is important to accountants

Back 165

IT must be compatible with AIS
IT will effect how they work in the future
Auditors must evaluate computerized systems
Auditors must evaluate effectiveness and efficiency of IT
IT questions are on professional certification exams
Accountants often help clients make IT decisions.

Front 166

Reasons why IT is important to accountants

Back 166

IT must be compatible with AIS
IT will effect how they work in the future
Auditors must evaluate computerized systems
Auditors must evaluate effectiveness and efficiency of IT
IT questions are on professional certification exams
Accountants often help clients make IT decisions.

Front 167

Reasons why IT is important to accountants

Back 167

IT must be compatible with AIS
IT will effect how they work in the future
Auditors must evaluate computerized systems
Auditors must evaluate effectiveness and efficiency of IT
IT questions are on professional certification exams
Accountants often help clients make IT decisions.

Front 168

Point of Sale (pos) devices

Back 168

Barcode readers: designed to read the barcode attached to a product
Reduce input error and centralize price information

Front 169

Hacking

Back 169

accessing and using computer systems without permission, usually by means of a personal computer and telecommunications network.

Front 170

Cracking

Back 170

Example is Cracking passwords for trial versions.
removing software protection designed to prevent unauthorized duplication
Many websites provide crack codes that let you use trial versions

Front 171

Denial of service (DOS) attack

Back 171

A coordinated attack on a computer system.
to deny a service provided by a company. Using thousands of computers that target a company website.

Front 172

Zombie

Back 172

a network of hijacked computers. They are under the control of an attacker. they are triggered by a set of instructions by a hacker.

Front 173

Phreaking

Back 173

attacking a phone system in order to make free calls or disrupt services. to make free phone calls.

Some hackers hacked the Voicemail of the NYPD "we are too busy drinking coffee aand eating donuts" to disriupt service

Front 174

Sniffing

Back 174

Electronic eavesdropping
Sniffing program will intercept all the network traffic. including username and passwords. All this information will be saved in a log file and the hacker can access it.

Capture packets as they travel over computer networks and sift captured data for confidential information.

Front 175

Spamming

Back 175

Sending unsolicited mass emails.

Front 176

Social engineering

Back 176

obtain confidential information by tricking people
Convincing a person in authority to reveal such sensitive information as passwords or computer codes to an unauthorized recipient.
-Spoofing and Phishing
-Vishing
-Posing

Front 177

Nigerian Scheme

Back 177

A spam sent about a nigerian queen

Front 178

Spoofing and Phishing

Back 178

email pretending from a legitimate company and request confidential information.
Like an email from ebay with a prompt to sign into the website. Your login information is then given to hackers from a fake website

Front 179

Vishing

Back 179

Voice phishing, emails requesting recipients to call a specified phone number.
instead of a website, it asks you to call a number and punch in your personal information

Front 180

Posing

Back 180

Hackers Set up a website, it looks legit. which sells items for a deep discount. You set up an account and provide personal information such as credit card number.

Front 181

Malware

Back 181

Malicious software that is designed to disrupt or disable a computer system.
Spyware
adware
keylogger
trojan horse
time bomb
trap door
virus worm

Front 182

Spyware

Back 182

secretly collect personal information, like spending habits and website history.

Front 183

Adware

Back 183

Popup banner ads delivered by spyware.
Usually bundled with free software.
Free software developer gets paid by adware developer to bundle software.

Front 184

Keylogger

Back 184

records keystrokes. Parents can use this .Employees can use it. Hackers can use it to steal information.

Front 185

Trojan Horse

Back 185

Malware
Set of malicious computer instructions in an innocent looking computer program.
Time Bomb

Front 186

Time Bomb

Back 186

Trojan horse that lie dormant until triggered by a specific time or circumstance.
Can be weeks after.

Front 187

Trap Door

Back 187

Backdoor, a way into the computer system. Allows you to bypass the normal system controls

Front 188

Virus/worm

Back 188

Self replicating malicious programs. usually you get this from an email attachment.

Front 189

Security Procedures

Back 189

Safeguard an organizations electronic resources and limit access to authorized users

Firewall
Proxy servers
Intrusion detection systems
Data Encryption

Front 190

Firewall

Back 190

guards against unauthorized access to sensitive file information from external internet users.

Can be hardware or software. windows has a firewall program.

Compares IP address with ACL file

Front 191

Firewall protection by inclusion

Back 191

software examines packets of incoming messages and limits entry to authorized users
ACL has a list of valid ip address
example 100 companies.

Front 192

Firewall protection by exclusion

Back 192

Denies access to unauthorized users.
ACL has a list of invalid ip addresses.

Front 193

ACL file

Back 193

Access control list. Controls incoming traffic.
List of ip addresses

Front 194

Proxy Servers

Back 194

Similar to a firewall. A computer and related software can be used to control Web accesses.

Front 195

Advantages of proxy servers:

Back 195

Funnel all internet requests through a single server.
Examine all incoming requests for information and test them for authenticity (acting like a firewall).
Limit employee Internet access to approved Web sites.
Store frequently accessed web pages on the server’s own hard disk (cache).

Front 196

Difference between proxy and firewall

Back 196

The Proxy can control incoming and OUTGOING. The firewall is just incoming traffic control.

Proxy server has a cache feature, and it can save lists of frequently used websites.

Front 197

Intrusion Detection system

Back 197

logs of network traffic and analyzed logs for signs of attempted or successful itnrusion.
all net traffic will be saved in an ids log. the administrator can browse the log.
Passive and Reactives

Front 198

Passive IDS

Back 198

Creates logs and alert network administrator to them

Front 199

Reactive IDS

Back 199

detect potential intrusions dynamically, log off potential malicious users and even reprogram a firewall to block further messages from the suspected source.

Front 200

Data Encryption

Back 200

Transforms plaintext messages into unintelligible cyphertext (Gibbereish) using an encryption key.

Example is shifting each letter 3 positions to the right.

Front 201

Decryption

Back 201

decodes the encrypted messages back plaintext.

Front 202

Two Types of Encryption Systems

Back 202

Secret Key
Public Key

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Secret Key encryption

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The same key is used both to encrypt and to decrypt and shared by the communication parties.
The number of secret keys become difficult to manage when a large number of parties are involved.
No way to prove who create a specific document.

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Public key encryption

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a pair of public/private encryption keys are used.
The sending party uses the recipient’s public to encode the message, and the receiving party uses the corresponding private key to decode it.
The public keys are freely distributable.
It is possible to prove who create a specific document with a digital signature.

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Drawbacks with Secret key

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if you want to exchange encrypted email messages. for each friend, you have to create a seperate secret key. If you use the same secret key for all messages, then everybody will know what you said to everybody else.

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Digital Signatures

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The digital signature is created by encrypting the message with the sender’s private key, and is decoded using the corresponding public key.
can be used to authenticate business documents: if a company’s public key decodes a message, then that company must also have created the message
provides assurance that the message has not been altered.