9. New Technology and Data Security Flashcards
What is the automation of accounting processes?
-using software to automate some of the essential accounting tasks
eg. reconciling accounts, sending out customer statements
What are the benefits of automation?
-improved data integrity
-more efficient approval
-greater internal data visibility
-quicker payment from customers
What is artificial intelligence?
-the concept of a computer being able to stimulate the way that humans think and behave
What is machine learning?
-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
What are 4 uses of AI and machine learning?
- coding of data
- audit of information
- forecasting future information
- analysing complex data
What is a block chain?
-a digital ledger of transaction that is shared across the entire network of computers in the particular block chain
How is a block chain created?
- user raises a transaction
- block is created to represent it
- the block is distributed to every computer on the network
- every computer validates the transaction
- the authenticated block is added to the chain
How are block chains useful?
-providing certainty about the ownership of assets
-maintaining accurate ledgers
-improving efficiency
What are the benefits of electronic filing?
-instant access to authorised users
-frees up physical space
-reduces the need to make copies
-better organisation
-automatically backed up
What are some disadvantages of electronic filing?
-need to keep software up to date
-large initial cost
-risk of data breaches
What is data analytics?
-process of collecting, organising and analysing large amounts of data
What are the 4 types of data analytics?
-descriptive
-diagnostic
-predictive
-prescriptive
What is descriptive?
-looks at and reports past performances
What is diagnostic?
-detailed analysis on the cause of things that have happened
What is predictive?
-forecasts
What is prescriptive?
-what actions needs to be taken
-combo of machine learning and algorithms
How can data analytics reduce the risk of fraud?
-can identify anomalies in information and then diagnose why these might have happened
What is outsourcing?
-when businesses use a third party to carry out tasks, provide services or handle operations that the business has previously done in-house
What may a business outsource?
-certain manufacturing processes
-HR tasks
-bookkeeping and payroll
-legal services
-cleaning
What are some advantages of outsourcing?
-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
What are some disadvantages of outsourcing?
-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
What is offshoring?
-relocation of some of the organisations operations to another country
What is an advantage of offshoring?
-higher visibility
-increased business
What is disadvantage of offshoring?
-cultural and language barriers
What is cloud computing?
-delivers computer resources on demand via the internet
What are 8 features of cloud computing?
- remote access
- remote data storage
- shared access
- multi-user access
- automation capabilities
- add-ins
- interaction with stakeholders
- real time data
What are some advantages of cloud accounting?
-lower IT costs
-improved sustainability
-better security
What are some disadvantages of cloud accounting?
-reliance on internet access
-data security
-software requirements
-switching may be difficult
What are the principles of GDPR?
-lawfulness, fairness and transparency
-purpose limitation
-data minimisation
-accuracy
-storage limitation
-integrity & confidentiality
-accountability
What is the maximum fine for data breaches in the UK?
the greater of £17.5 million or 4% of annual global turnover
When must you report a data breach?
-within 72 hours of being aware of it
What are some controls that can be implemented to reduce the risks of data breaches?
-accounting systems access levels
-security controls
-integrity controls
What are accounting systems access levels?
-passwords to restrict access
What are security controls?
-to protect data held by a business
-firewalls
What is a firewall?
-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
What are integrity controls?
-controls in a computer system that are designed to manage and maintain the integrity of data
What are the 3 types of integrity controls?
- input
- processing
- output
What are 2 significant risks to a business from a cyber attack?
- loss of data
- disruption to business operations
What is anti-virus software?
-runs in the background and is designed to provide real time protection against viruses by scanning and deleting them from the system
What is data encryption?
-translates data into another form so that only authorised users with a password can read it
What are the cyber security principles?
- confidentiality
- integrity
- availability
- authentication
- non-repudiation
What is non-repudiation?
-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