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Harley Davidson Case Study

1416 words - 6 pages

Case Study 6.1: Harley-Davidson, Inc.
Zachary NewComer
11/06/14
Auditing
Prof. Riggs
(1)Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet. If your instructor does not specify the number of risks for you to identify, list at least three.
1. Suppliers might leak information to Harley-Davidson’s competitors
2. Suppliers might not have the same ability to be technologically advanced as Harley-Davidson’s new systems
3. Going to an internet based system makes you susceptible to people hacking the system and acquiring ...view middle of the document...

Or have a repair team on call at all times throughout the time of business to limit down time.
5. Have external auditors check up on how the suppliers are using the system and making sure they are recording things correctly
6. Make sure it is properly backed up daily and taken to a place that would not be affected by the destruction of the original system or copy.
7. Making suppliers get an audit of their technology prior to doing business with them to ensure their technology is compatible with Harley-Davidson’s new system.
[3] Given the technology linkages between businesses partners in eBusiness systems, how might an eBusiness system like Harley-Davidson’s increase business risks for its business partners?
- The costs to a supplier might out weight the profitability of doing business with Harley-Davidson.
- The suppliers have to rely on the requests by Harley-Davidson when deciding how much inventory to have on hand
- Suppliers might lose other business because of how much they have to do for Harley-Davidson, because they might spend more time with Harley-Davidson they would normally have spent satisfying other customers.
- Suppliers will have to put more pressure on employees to meet the demand constantly being put on them through an electronic system of Harley-Davidson
- Suppliers might lose business freedom as they would rely on business from Harley-Davidson in the new system because of the huge order requests by Harley-Davidson
[4] Research the SysTrust and WebTrust services from the information on the following web page (or search the Internet or within the AICPA’s Information Technology Center Web site for “Trust Services”): http://infotech.aicpa.org. Describe how WebTrust services differ from SysTrust services. Describe how they are related.
Both SysTrust and WebTrust services are designed to evaluate and make sure a company is doing everything in its power to keep clients information as secure as possible. There are quite a few differences however on the main goals these two services are trying to accomplish.
WebTrust is designed to be more focused on maintaining consumer confidence who are purchasing services and products online. Once a company has been evaluated by WebTrust they can actually have the WebTrust seal of approval on their web page as well. They do reevaluate a customer once every 12 months to make sure they are still doing the things necessary to keep the consumers trust when they are purchasing services and products online.
SysTrust is more designed to focus on making sure the company has the proper controls in place to effectively control all of information technology used in the business. SysTrust makes sure that the IT system is running as effectively and efficiently as possible. SysTrust has four main criteria, which are security, availability, processing integrity, and confidentiality. This evaluation is done by a CPA as well and if a company is following the four criteria and effectively...

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