Question

State any three limitations of Computerised Accounting System.

Hint:

Think about cost of upgrading technology, power failure and security of data. Any three points from the official list earn 3 marks.

Answer 1

Step 1: Understand the system:
A Computerised Accounting System (CAS) keeps and processes accounts on a computer. It is fast and accurate, but it also has weak points.
The question asks for any three such limitations, and each limitation carries 1 mark.

Step 2: Limitation 1: Quick obsolescence of technology:
Hardware and accounting software become outdated very fast.
A business must keep spending money to upgrade them in a short period of time.
This raises the cost of running the system. (1 mark)

Step 3: Limitation 2: Loss or corruption of data:
A computer works on electric power.
If the power goes off suddenly, data that is not yet saved may be lost or may get corrupted.
So regular backups are needed. (1 mark)

Step 4: Limitation 3: Danger of hacking:
Data stored on a computer or on a network can be reached by unauthorised persons.
Hackers and viruses can steal, change or destroy the financial records.
So the firm needs strong passwords and security tools. (1 mark)

Step 5: Other limitation you may write instead:
Reports that were not programmed or specified in the software cannot be generated.
The user is limited to the formats built into the package. Any three of the four points above earn full marks.

Final Answer:
Three limitations of CAS: (1) technology becomes obsolete quickly, (2) data may be lost or corrupted by power failure, (3) data is open to hacking. Total 3 marks.