New Technology and data security

Question 1

Advanatges of automated financial system?

Answer 1

Improve data integrity
More efficent approval
Quicker payment

Question 2

What is AI?

Answer 2

The concept of a computer or machine being able to stimulate the way humans think and behave

Question 3

What is machine learning?

Answer 3

An application of AI that codes computers to learn from data. Bases its actions on past events to predict the probability of what will happen next

Question 4

Examples of AI and machine learning in accounting?

Answer 4

Audit of info
Forecasting future data
Analsying complex data

Question 5

What are the disadvantages of AI and machine learning?

Answer 5

Running costs
expensive
Re-train staff

Question 6

What is Blockchain?

Answer 6

A digital ledger that is shared across the entire network of computers in the paticular blockchain. Info is duplicated and then shared across a huge number of users which can’t be altered or destoryed.

Question 7

What are the steps of a blockchain transaction?

Answer 7

User raises a transaction
Block is created to represent the transactions
Block is distributed to every computer in the network
Every computer has to validate the trasnaction to prove its authentic
Once validated the block will be added to the chain

Question 8

How is a blockchain harder to hack into?

Answer 8

Detials of the transaction have to be approved by every computer, which protects the data so it cant be manipulated and unauthorised data cannot be processed

Question 9

How can a blockchain be helpful?

Answer 9

Providing certainty about the ownership of assets
Maintaining ledgers of accurate info

Question 10

Benefits of electronic filing?

Answer 10

Instant access for all authroiused users at the time
Files are better organsied
Better version control as the business will have a full document history

Question 11

Disadvantages of electronic filing?

Answer 11

Significant cost setup
Risk of data breaches

Question 12

Advantage of Electronic signitures

Answer 12

Quick and efficient

Question 13

Name three ways a document can be singed elcetornically?

Answer 13

Simple electronic signitures - Scanning a physical signature
Advanced electronic signatures - Application on mobile phones which is needed to sign the document
Qualified electronic signatures - Effectively an electronic version of getting the signature witnessed.

Question 14

What are the four data analytics?

Answer 14

Descriptive - what happened in the business
Diagnostic - Why did it happen
Predictive - What is likely to happen
Prescriptive - What action?

Question 15

What is outsourcing?

Answer 15

Using a third party to carry put tasks, provide services or handle operations

Question 16

Advantages of outsourcing?

Answer 16

Cost savings
Staff freed up time
Benefiting from the expertise of the third party business

Question 17

Disadvantages of outsourcing?

Answer 17

Quality issues may arise
Difficult to move back in house
Cost increases from outsourcing company once the business relies on it

Question 18

What is Offshoring?

Answer 18

Relocation of some of the business operations to another country. Usually to less developed contires with the intention of cost saving

Question 19

What is an advanatge and disadvantage of offshoring?

Answer 19

Ad - Higher visibility for the business in that country
Dis - Cultural and language barriers

Question 20

What is cloud accounting?

Answer 20

Access to files via remote service

Question 21

Advantages of cloud accounting? (8)

Answer 21

Shared Access
Multi user access
Remote access
Remote data storage
Automation capabilities
Availability of apps/plugins/addins
Interaction with stakeholders
Real time data

Question 22

What is the main act regarding data protection

Answer 22

Data protection act 2018

Question 23

Disadvantages of cloud accounting?

Answer 23

Reliance on internet access
Data secuirty
Software requirements
Switching may be difficult

Question 24

Name the principles of data protection

Answer 24

Lawfulness, fairness and transparency
Data minimisation
Prupose limitation
Storage limitation
Accuracy
Accountability
Integrity and confidentiality

Question 25

How may a data breach occur? Who regulates GDPR?

Answer 25

Due to errors made by those handling data or by deliberate criminal attacks.
Information commissioners office (ICO) to regulate and enforce GDPR

Question 26

What is the punishment in the EU and UK for breaches of data protection? What do businesses require to do after a data breach?

Answer 26

EU - 20 million euros or 4% of the organisations turnover
UK - £17.5 million or 4% of the organisation turnover

Must be reported within 72 hours and organisations must keep a record of any personal data breaches

Question 27

Name 2 risks data should be protected from?

Answer 27

Physical risk
Unathroised access

Question 28

What controls must be implemented to protect data?

Answer 28

Accounting systems access levels
Security cotnrols - firewalls
Integrity controls

Question 29

Name 3 softwares which are used for cyber security?

Answer 29

Firewalls
Antivirus software
Data encryption