Chapter 14 - Development in technology Flashcards
What is cloud computing?
Provides a business with computing resources such as software and storage using a network of remote servers hosted on the internet
What are common features of cloud computing systems?
- Cloud systems can be either private or public
- Public systems sell services to anyone on the internet
- A private system is a proprietary closed system for a limited set of users - They are elastic so users can use as little or as much as they need
- The service will be fully managed by the provider in the case of public system
What is cloud accounting?
One application of cloud computing. Accounting software is provided in the cloud by a service provider rather than running the software on a local server
What examples of the internet of things?
- Home automation: Lighting, heating, security systems enabled through smart technology and home assistant
- Vehicles and transport: Connected cars and live traffic monitoring, allow improved fleet management and planning. Self-driving vehicles
What are digital assets
Any text or data file that is formatted into a binary source which includes the right to use it; digital files that do not carry the right are not considered digital assets
What are two examples of digital assets
- Media assets
- Textual contents
What is distributed ledger technology
Allow people or organisations that do not know each other to trust a shared record of events
What are the key features of distributed ledger technology
- Distributed ledger has no central storage and is shared by all parties who require access, each having an identical copy of the ledger
- Different parties add to the shared record and procedures e.g. blockchain to ensure information is valid before it’s accepted
- What is a lack of a central administration is the main advantage of the technology as it prevents any one party from dominating or corrupting the process
- Security is provided through cryptographic keys and clear signatures of all transactions
What is blockchain
Type of database that stores information together in blocks that are chained together. It is a process used to ensure only valid information is recorded in distributed ledger.
What is the blockchain process?
- New transactions
- New transactions is then transmitted to a network to peer-peer computers scattered across the world
- The network of computers then solves equations to confirm the validity of the transactions
- Once confirmed to be legitimate transactions, they are clustered together into blocks
- These blocks are then chained together creating a long history of all transactions that are permanent
- Transaction is complete
What are fintechs?
Software and other technologies that provide automated and improved financial servicesW
What are the examples of fintechs
- Crowd funding
- Peer to peer lending e.g. zopa
- Online currency conversion
- Digital wallets e.g. Apple Pay
What is a crypto currency
Digital tokens that allow online trading. There is no third party (bank) so it is similar to paying with cash
What are features of crypto currencies?
- Use distributed ledgers and blockchain to record the transfers
- Keep currency in a digital wallet
- Price of currency in volatile
- Risks of hacking the online wallet
- Opportunities for money laundering due to privacy levels
What are cognitive technologies?
Computer based systems that represent, reason about and interpret data. e.g. AI
What is artificial intelligence?
Use of computers to perform tasks thought to require intelligence such as learning and reasoning including
- Medical diagnosis through interpretation of medical images
- Home assistants learn our language and habits to better predict and understand our requirements
E.g. live chat functionsW
What is machine learning?
- Rather than follow explicit programming instructions, machine learning algorithms detect patterns, learn how to make their own decisions
- Machine learning uses both predictive analytics (what will happen) and prescriptive analytics
What is robotic process automation RPA
- Creation of technology and its application to control and monitor activities without human interference. Intelligent systems and artificial intelligence facilitate the process of automation
- RPA will be used for routine processes
What are the impacts on the accountancy profession
- Automation - Maintenance of ledgers and preparation of reconciliation is now largely automated
- Systems advice: Advisory work for clients evaluating the merits of potential new systems and technology
- Transparency in recording: Distributed ledger technology is transforming the way transactions are recorded, increasing transparency
Smart contracts - Can be audited when created as they are secure once established and automatically execute
- Data analytics: Analytics can target risk and improve the relevance and efficiency of audit work
- Software controls: Validating the adequacy of internal controls is a fundamental part of audit assignment
- New types of goods and services: Accounting must be able on things like the treatment of new revenue streams and digital assets
- Regulations: Understanding and advising on complex regulation relating to data and technology as well as being aware of the risk of breaches
What is a management information systems (MIS)
- Systems to produce information allowing managers to make effective decision
What are examples of MIS
- Executive information systems (EIS) or Executive support systems (ESS): A database that pools data from internal and external sources providing easy to use information to senior managers to help make strategic decisions
- Decision support systems (DBS): Combines data and analytical model or data analysis tools to support decision making
- Expert systems (ES): Expert systems allow users to benefit from expert knowledge and information. The systems will consist of a database holding specialised data and rules about what to do in, how to interpret and given a set of a structure
- Knowledge work systems (KWS): Facilitate the creation and integration of new knowledge into an organisation
- Office automated systems (OAS): Systems that increase the productivity of data and information workers
What is obsolescence risk?
Technology that goes out of date very quickly so the perceived competitive advantage may be short lived
What is inexplicability risk
Technology becomes too complex for humans to understand
What is data protection?
legislation states how long personal data can be held and stipulates the reasons why it can be held
What is automation risks?
Training of staff to be able to work in an automated envrionment
What are ethical risks?
Who is at fault if a computer makes a mistake? Can machines think ethically
What is a cyber risk
Cyber risks is the risk of financial loss, business disruption, reputation damage that are a consequences of accidents and poor systems integrity
What is hacking
Use of specialist software to gain unauthorised access to systems
What is phishing?
Bogus emails that ask for personal or security information
What is malicious information
Where the user’s files are hijacked and held to ransom
What is distributed denial of service? DDoS
Websites and online services being overwhelmed with large amounts of internet traffic that is designed to crash the system
What is cyber resilience?
ability of an organisation to ensure its data and information is reliable, available, has integrity and is adequately protected from unauthorised access
What do back up plans mean in terms of cyber resilience?
Plans put in place to ensure businesses can continue and all critical data can be recovered should an unexpected outrage occur?
What areas of technology should include the information security plan
- Security systems and device configuration
- Network security
- User privileges
- Home and mobile working
- Removable media controls
- User education and awareness
- Web services
- Legal
