new technology and data security Flashcards
How can software be used to autmate the accounting process ? P181
- e.g. sending/ reconciling statemewnts , updating records
- streamline - little human intervention
What are the beneifts of automating the accounting process ? P181
- Improved data integrity - human error reduction
- efficient approval - automatic sending - save time
- internal data visibility - enable identify issues
- quicker customer payments - quicker invoicing
What does automation mean for accounting professionals ? P182
- More advisory role - rest of business / clients
- not just number crunching
What is artifical intelligence (AI) ? P182
- Computer/ machines simulate human thinking
What is machine learning P182
- Application of AI
- codes computer to learn from data
- past event based
- predicts future
- e.g. social media - specific advertising - past viewing history
What is an example of AI and machine learning within an accounting system ? P182
- Purchase invoice for inventory - received before
- scanned documenbt - automatically sent to right inventory & correct supplier account
What are the main uses for AI and machine learning within an accounting system ? P182
- Coding of data - invoice coding
- audit of information - highlight unusal
- forcasting future data - e.g. future price change, exchange rates
- analysing complex data
What are the disadvantages of AI and machine learning for companies ? P182
- Expensive - set up and updates - large organisation exempt
- counter: off shelf cloud accounting system - smaller organisations
- reluctance- trusts system
- staff redundancies
- counter - train staff analyse data from system
What is a blockchain ? P183
- Digital ledger of transactions
- shared - network of computers
What is the main advantage of blockchain use ? P183
- Duplicated info - large number of users shared
- means - transactions - not altered deleted, destroyed
What are the steps for a blockchain working in practice ? P183
- Transaction raised
- blocked created - represents transaction
- block distributed - every computer
- every computer validates transaction
- authenticared - block added to chain
How can a block chain protect against hacking features ? P183
- Transaction shared - user in blockchain
- all transactions details - all user recorded
- ledger of all users updated - all agreed consistent (not single computer)
- new block linked to old block - cryptographic hash
How can blockchains be useful in the accounting system ? P184
- certainty - ownership of asset
- ledger maintenance - accurate information
- costs reduction & efficency (concentrate on other tasks)
What are the benefits of electronically filing documents, rather than keeping paper documentation ? P184
- authorised user - instant access
- physical space free up
- reduction of copies- access to same
- organisation
- version control - full document history available
- automatically backed up - no natural disasters - fire / floods
- improved productivity - more access
What are the disadvantages of electronically filing documents ? P184
- Software used - needs updating
- significant initial set up costs
- risk of data breach
What are the main ways for a business to sign a document electronically ? P184
- simple electronic signatures - scanning physical / tick box
- advanced electronic signatures - electronic identifier - electronic document validation
- qualified electronic signature - electronic signature witness - third party trust service provider
What is data analytics ? P185
- Collecting, organising, analysing - large data amounts
- analyse - identify data patterns
What are the four types of data analytics ? p185
- Descriptive
- Diagnostic
- Predictive
- Prescriptive
What is descriptive data analytics ? P185
- Reports on past performance
What is diagnotic data analytics ? P185
- Analyses causes of things
What is predictive data analytics ? P185
- Make predictions - large volume of data
- not 100 % accurate
What is prescriptive data analytics ? P185
- Action to take
- machine learning
- algorithms and rules
- problem solving recommendations
What are the advantages of data analytics ? P186
- quicker decision making - large data processing
- reduce risks of fraud - anomaly identification
- priotising - profitable activities . trend identification
What is a disadvantage of data analytics ? P186
- expensive
- predictive and prescriptive data - algorithm written
What is outsourcing ? P186
- Third party - tasks and services / operations
- previously in house
What are the advantages of outsourcing ? P187
- Potential cost savings - payroll costs
- staff time freed up
- outsourcing business expertise benefit
- no legislation/ regulation compilance concern - related to outsourced tasks
What are the disadvantages of outsourcing ? P187
- costs structure change - capital costs decreased, expenses increased
- core operations outsourced - expertise lost
- quality issues
- difficulty moving back in house
- data security - third party to see confidential info
- staff morale affected - redundancies
- outsourcing company costs increase = reliance
- delivery- outsourced item - issues
What is offshoring ? P187
- Relocating operations - another country
- e.g. developed countries - less developed countries
What is the main advantage and disadvantage of offshoring ? P187
- advantage - Higher visibility - business in overseas country
- disadvantage - language and cultural barrier
What is cloud computing ? P188
- delivers computer resources - on demand - the internet
- remote server access - update files
- e.g. icloud - user photo files, notes, passwords
What is cloud accounting ? P188
- Accounting system - internet access - remote & secure servers
- system provider owned
- user subscription - accounting records in cloud
What are features of cloud accounting ? P188
- Remote access
- remote data storage - autmatic data adding
- shared access - no emailing info/ usb - info viewed same time
- multi user access
- automation capabilities - automatically posting bank transactions
- app/plug ins / add ins
- stakeholder interaction
- real time data - up to date, checked any time
What are the specific benefits of cloud accounting ? P189
- Lower IT costs - no own server - reduce IT expertise - no back up process
- improved sustainability -
- better security - security included - no back up needed
What are the disadvantages of cloud accounting ? P189
- Internet access reliance - no/poor disruption - busienss operations affected
- data security - increased unauthorised access risk
- software requirements - all stakeholders - same clouding software
- difficulty switching
Where do data regulation principles come from ? P190
- Data Protection act 2018
- EU General Data Protection Regulagtions requirements
What are the 7 data protection regulation principles ? P190
- Lawfulness, fairness, and transparency - open & honest reason data processing
- pripose limitation
- data minimisation - only necessary data
- accuracy - kept up to date
- storage limitation - no longer than necessary - length justified
- integrity and confidentiality - kept secure
- accountability - audit trail - regulation compilance
What is meant by breaches in data protection ? P191
- personal data business held - shared
- unauthorised persons - misuse info
How are organisations who suffer a data breach dealt with ? P191
Information commissioner’s office - regulate and enforce GDPR
>€20 million / 4 % organisation annual turn over - UK business - EU resident data
>£17.5 million / 4% annual global turnover - uk business- uk resident
What must an organisation do if they discover a data regulation breach ? P191
- relevant supervisory authority - within 72 hours
- inform individuals - high risks/ adversly affect rights and freedoms - undue delay
What must an organisation have to ascertain if it needs to notify an authority or individual of a data breach ? P191
- Robust data breach detection , investigation & internal reporting procedures
Aside from reporting it, what must organisations do with data breaches ? P191
- Keep record
- required notification relevant supervisory authoriity/ individual or both
What type of threats must an organisation protect its data from, and how is this done ? P191
- Physical threats
- unauthorised access
- implement certain controls
What controls are implements for a business to protect data from physical threats and unauthorised accesss ? P192
- Accounting system access levels
- security controls
- integrity controls
How can an accounting system access level protect against unauthorised access ? P192
- password - authorised employees only
- electronic access logs - record of who accessed
How can security controls protect help protect information systems ? P192
- Firewalls - barriers
- between internal netwrok and public internet
- incoming/ outgoing taffic monitoriing
- dangerous trackers out
How can integrity controls help maintain information systems ? P192
- Manages and maints integrity of data:
- input controls
- processing controls
- output cntrols
How can input controls help with integrity control ? P192
Maintaining information systems
- complete transaction assurance - before processing
- documents sequence checking
How can processing controls help with integrity controls ? P192
Maintaining infromation systems
- ensure data processed properly
- data match - two or more items
- invoice - goods received note
How would output controls help with integrity controls ? P192
- ensure - output data integral:
- reconciling - receivables control account - receivables ledger
- review - sign off user of system - BACs payroll payment - payroll management
What are the three cyber secuirty measures businesses must use to prevent risks from cyberattacks ? P193
- Firewalls
- Antivirus software - protection scanning, detecting , deleting virus
- Data encryption - another form/ code - decryption key reading - data confidentiality purpose
