Question

‘A business data needs to be guarded from its competitors.’ Explain which features of Computerised Accounting System help a business to maintain its secrecy.

Hint:

Combining access control, password policies, and encryption ensures data confidentiality in a computerised accounting system.

Answer 1

1. Password Protection:
Allows only authorised users to access the system.
2. User Access Control:
Different roles (admin, accountant, viewer) can be assigned different rights.
3. Audit Trail:
Keeps records of all changes made in the system — who made it, when, and what was changed.
4. Data Encryption:
Protects data from external hacking by encoding it during storage and transmission.
5. Regular Backups:
Ensures data is not lost and can be restored in case of failure or intrusion.