Question

Explain any two ways in which Computerized Accounting System safeguards the secrecy of business data.

Hint:

Pick any two of password security, data audit and data vault. Explain each in four short points.

Answer 1

Step 1: What is asked:
Secrecy of business data means that only the right person can see or change the data. We must explain any two ways in which CAS protects it. Each way carries 2 marks.

Step 2: Way 1: Password security:
Each user is given a password. Only the authorised person can enter the system and access the data.
This keeps the integrity of data, because unauthorised users cannot change it.
The password is stored in a binary decoded format. This method is widely accepted.

Step 3: Way 2: Data audit:
The software gives administrator rights to a chosen person. This avoids unauthorised access to the data.
The administrator audits the data for correction of errors.
The system displays all the entries along with the name of the auditor and user, and the date and time of each change. This restricts any alteration.

Step 4: Marks check:
Each way is explained with four value points of half a mark each. So two ways give 2 + 2 = 4 marks.

Final Answer:
CAS safeguards secrecy of data through password security and data audit. A third way, the data vault, can also be given.