9. New Technology and Data Security Flashcards by Alicia Slade

What is the automation of accounting processes?

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

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What are the benefits of automation?

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

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What is artificial intelligence?

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

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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

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What are 4 uses of AI and machine learning?

coding of data
audit of information
forecasting future information
analysing complex data

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What is a block chain?

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

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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

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How are block chains useful?

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

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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

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What are some disadvantages of electronic filing?

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

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What is data analytics?

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

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What are the 4 types of data analytics?

-descriptive
-diagnostic
-predictive
-prescriptive

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What is descriptive?

-looks at and reports past performances

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What is diagnostic?

-detailed analysis on the cause of things that have happened

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What is predictive?

-forecasts

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What is prescriptive?

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

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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?

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

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?

1. input 2. processing 3. output

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

1. loss of data 2. 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?

1. confidentiality 2. integrity 3. availability 4. authentication 5. 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