9. New Technology and Data Security Flashcards

1
Q

What is the automation of accounting processes?

A

-using software to automate some of the essential accounting tasks
eg. reconciling accounts, sending out customer statements

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2
Q

What are the benefits of automation?

A

-improved data integrity
-more efficient approval
-greater internal data visibility
-quicker payment from customers

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3
Q

What is artificial intelligence?

A

-the concept of a computer being able to stimulate the way that humans think and behave

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4
Q

What is machine learning?

A

-application of AI
-codes computers to learn from data without being programmed explicitly
-bases its actions on past events to predict probability of what will happen next

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5
Q

What are 4 uses of AI and machine learning?

A
  1. coding of data
  2. audit of information
  3. forecasting future information
  4. analysing complex data
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6
Q

What is a block chain?

A

-a digital ledger of transaction that is shared across the entire network of computers in the particular block chain

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7
Q

How is a block chain created?

A
  1. user raises a transaction
  2. block is created to represent it
  3. the block is distributed to every computer on the network
  4. every computer validates the transaction
  5. the authenticated block is added to the chain
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8
Q

How are block chains useful?

A

-providing certainty about the ownership of assets
-maintaining accurate ledgers
-improving efficiency

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9
Q

What are the benefits of electronic filing?

A

-instant access to authorised users
-frees up physical space
-reduces the need to make copies
-better organisation
-automatically backed up

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10
Q

What are some disadvantages of electronic filing?

A

-need to keep software up to date
-large initial cost
-risk of data breaches

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11
Q

What is data analytics?

A

-process of collecting, organising and analysing large amounts of data

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12
Q

What are the 4 types of data analytics?

A

-descriptive
-diagnostic
-predictive
-prescriptive

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13
Q

What is descriptive?

A

-looks at and reports past performances

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14
Q

What is diagnostic?

A

-detailed analysis on the cause of things that have happened

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15
Q

What is predictive?

A

-forecasts

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16
Q

What is prescriptive?

A

-what actions needs to be taken
-combo of machine learning and algorithms

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17
Q

How can data analytics reduce the risk of fraud?

A

-can identify anomalies in information and then diagnose why these might have happened

18
Q

What is outsourcing?

A

-when businesses use a third party to carry out tasks, provide services or handle operations that the business has previously done in-house

19
Q

What may a business outsource?

A

-certain manufacturing processes
-HR tasks
-bookkeeping and payroll
-legal services
-cleaning

20
Q

What are some advantages of outsourcing?

A

-potential cost savings
-staff time free up to carry core operations
-benefitting from the expertise of the business to which the work has been outsourced

21
Q

What are some disadvantages of outsourcing?

A

-could lose expertise
-quality issues may arise
-difficulties in moving the work back in house
-data security
-cost increases
-potential delay in the delivery of outsourced items

22
Q

What is offshoring?

A

-relocation of some of the organisations operations to another country

23
Q

What is an advantage of offshoring?

A

-higher visibility
-increased business

24
Q

What is disadvantage of offshoring?

A

-cultural and language barriers

25
Q

What is cloud computing?

A

-delivers computer resources on demand via the internet

26
Q

What are 8 features of cloud computing?

A
  1. remote access
  2. remote data storage
  3. shared access
  4. multi-user access
  5. automation capabilities
  6. add-ins
  7. interaction with stakeholders
  8. real time data
27
Q

What are some advantages of cloud accounting?

A

-lower IT costs
-improved sustainability
-better security

28
Q

What are some disadvantages of cloud accounting?

A

-reliance on internet access
-data security
-software requirements
-switching may be difficult

29
Q

What are the principles of GDPR?

A

-lawfulness, fairness and transparency
-purpose limitation
-data minimisation
-accuracy
-storage limitation
-integrity & confidentiality
-accountability

30
Q

What is the maximum fine for data breaches in the UK?

A

the greater of £17.5 million or 4% of annual global turnover

31
Q

When must you report a data breach?

A

-within 72 hours of being aware of it

32
Q

What are some controls that can be implemented to reduce the risks of data breaches?

A

-accounting systems access levels
-security controls
-integrity controls

33
Q

What are accounting systems access levels?

A

-passwords to restrict access

34
Q

What are security controls?

A

-to protect data held by a business
-firewalls

35
Q

What is a firewall?

A

-a network security device that sits between a business’s internal network and the public internet to monitor traffic, and keep hackers and viruses out

36
Q

What are integrity controls?

A

-controls in a computer system that are designed to manage and maintain the integrity of data

37
Q

What are the 3 types of integrity controls?

A
  1. input
  2. processing
  3. output
38
Q

What are 2 significant risks to a business from a cyber attack?

A
  1. loss of data
  2. disruption to business operations
39
Q

What is anti-virus software?

A

-runs in the background and is designed to provide real time protection against viruses by scanning and deleting them from the system

40
Q

What is data encryption?

A

-translates data into another form so that only authorised users with a password can read it

41
Q

What are the cyber security principles?

A
  1. confidentiality
  2. integrity
  3. availability
  4. authentication
  5. non-repudiation
42
Q

What is non-repudiation?

A

-participants in a digital transaction can’t deny that they were involved in the transaction
-we use digital signatures and audit trails to achieve this