Business and Technology · The impact of advances in technology

Cloud Computing and Emerging Technologies for ACCA Business and Technology

Updated 11 October 2026 · Fact-checked

Cloud computing means renting IT resources over the internet instead of owning them. Blockchain is a shared, tamper-resistant ledger. The internet of things links devices that collect and share data. To answer exam questions, identify the technology, state the benefit, state the risk, then apply both to the scenario.

Understand Cloud Computing and Emerging Technologies

Cloud computing means using servers, storage, software and networks that a provider owns and you access over the internet. You pay for what you use, often by subscription. You do not buy and run the hardware yourself.

There are three service models. IaaS (infrastructure as a service) gives you raw computing power, storage and networking. You manage the operating system and applications. PaaS (platform as a service) gives you a platform to build and run your own applications. The provider manages the infrastructure and operating system. SaaS (software as a service) gives you finished software, such as online accounting or email. The provider manages almost everything.

There are also deployment models. A public cloud is shared by many customers. A private cloud is used by one organisation. A hybrid cloud combines both. Benefits include lower upfront cost, scalability, access from anywhere and automatic updates. Risks include reliance on the provider, loss of control over data, security and privacy concerns, internet dependence and data held in other countries.

Blockchain is a type of distributed ledger. A distributed ledger is a database copied across many computers (nodes), with no single central owner. In a blockchain, transactions are grouped into blocks. Each block is linked to the one before using a cryptographic code, so changing old data would break the chain and be detected. Records are very hard to alter. Blocks are added only when the network agrees, through a consensus process.

For accountants, blockchain may give a shared, verifiable record of transactions. This could reduce reconciliations and support audit by giving strong evidence that records are complete and unaltered. It does not prove a transaction was valid, authorised or correctly valued. Risks include cost, energy use, errors entered before recording, regulation and cyber attacks on connected systems. Smart contracts are programs that run automatically when set conditions are met.

The internet of things (IoT) is a network of physical devices with sensors and internet connections that collect and exchange data. Examples are tracked delivery vehicles, smart meters and machines that report faults. Uses include real-time stock and asset tracking, predictive maintenance and better customer insight. Risks include weak device security, privacy issues, large data volumes and system failures.

Key formulas to remember

IaaS: Provider supplies infrastructure; you manage OS and applications; Think: you rent the hardware. Examples: virtual servers and storage.
PaaS: Provider supplies infrastructure and platform; you manage your applications; Think: you rent a development and hosting environment.
SaaS: Provider supplies the complete application; you just use it; Think: you rent the finished software, usually through a browser.
Blockchain features: Distributed + linked blocks + consensus + very hard to alter; Use these four ideas to describe it in any answer.
Cloud deployment models: Public (shared) | Private (one organisation) | Hybrid (mix); Choose by balancing cost against control and security.
Answer structure: Define → Benefit → Risk → Apply to scenario; A reliable pattern for written-style and multiple response items.

How to solve Cloud Computing and Emerging Technologies questions

Use this method for any objective test question on cloud, blockchain, distributed ledgers or IoT.

1Read the last line first to see what is asked: a definition, a benefit, a risk, or a use for accountants.
2Identify the technology in the scenario. Look for clues such as 'rents servers', 'shared ledger' or 'sensors'.
3For cloud questions, decide who manages what. The more the provider manages, the closer to SaaS.
4Check the exact wording: 'benefit' or 'risk', 'most likely' or 'least likely', 'select two'.
5Eliminate options that overstate a claim, such as 'eliminates all risk' or 'guarantees accuracy'.
6Match the remaining options to the scenario facts, such as a small firm, global operations or sensitive data.
7Check you have chosen the stated number of answers, then confirm before moving on.

Quickest way: Who-manages-what test

When to use it: Use for IaaS, PaaS and SaaS questions and for quick technology matching.

Ask: is the customer getting hardware, a build platform, or ready-made software?
Hardware only means IaaS. Build platform means PaaS. Ready software means SaaS.
For blockchain, look for 'shared', 'no central owner' or 'cannot be altered easily'.
For IoT, look for 'sensors', 'connected devices' or 'real-time data'.
Reject any option with absolute words such as 'always', 'eliminates' or 'guarantees'.

Common mistakes in Cloud Computing and Emerging Technologies

Mixing up IaaS, PaaS and SaaS.
The names look alike and students memorise letters, not meaning.
Fix: Remember the customer's view: hardware (IaaS), build platform (PaaS), finished software (SaaS).
Saying blockchain guarantees that transactions are true.
Students confuse 'hard to alter' with 'correct'.
Fix: Say it makes records tamper-resistant. Wrong or fraudulent data entered at the start still stays recorded.
Treating cloud as risk-free because the provider looks after it.
Outsourcing feels like transferring responsibility.
Fix: The business stays responsible for its data. Mention provider reliance, security, privacy and contracts.
Using 'blockchain' and 'distributed ledger' as if they were identical.
Textbooks often use them together.
Fix: Blockchain is one type of distributed ledger. All blockchains are distributed ledgers, but not all distributed ledgers use blocks.
Listing only benefits or only risks.
Students learn one side and rush.
Fix: Give both, and link each to the scenario, for example a small business gaining scalability but risking data control.
Claiming IoT only matters to manufacturers.
Common examples are factory machines.
Fix: Think wider: retail stock tracking, logistics, smart buildings, and accounting data from connected assets.

Worked examples

Example 1

A small company wants to use online accounting software through a web browser. The provider manages the servers, operating system and software updates. Which cloud service model is this? A) IaaS B) PaaS C) SaaS D) Private cloud

Show the solution

The customer receives finished software, not hardware or a build platform.
The provider manages servers, operating system and updates.
Finished software delivered online is SaaS.
Private cloud is a deployment model, not a service model, so D is wrong. IaaS and PaaS give less provider management of software.

Answer: C) SaaS

Example 2

Select TWO statements that correctly describe a possible effect of blockchain on accounting and audit. A) It guarantees every recorded transaction is valid. B) It can give auditors stronger evidence that records have not been altered. C) It can reduce the need for reconciliations between parties sharing the ledger. D) It removes the need for internal controls over data entry.

Show the solution

A is wrong: blockchain records what is entered. It cannot prove a transaction was genuine or authorised.
B is correct: linked blocks and shared copies make later changes easy to detect.
C is correct: parties share one agreed record, so fewer differences need reconciling.
D is wrong: controls over what is entered at the start are still needed.

Answer: B and C

Exam tips

Learn the three cloud models by what the customer manages. Expect scenario questions that describe the arrangement without naming it.
In multiple response items, count how many answers are asked for. Reject absolute claims first.
Link every benefit or risk to the scenario, such as business size, location or data sensitivity.
For blockchain, always separate 'records are hard to alter' from 'records are correct'.
Read the question for the viewpoint: business, auditor or accountant. The right answer changes with it.

Practice questions from The impact of advances in technology

Cloud Computing and Emerging Technologies in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Cloud Computing and Emerging Technologies: frequently asked questions

What is the difference between IaaS, PaaS and SaaS?

IaaS rents you infrastructure such as servers and storage. PaaS rents you a platform to build and run your own applications. SaaS gives you ready-made software to use, usually through a browser.

What are the main benefits and risks of cloud computing?

Benefits include lower upfront cost, scalability, remote access and automatic updates. Risks include dependence on the provider and internet, security and privacy concerns, and less control over where data is held.

How does blockchain affect accounting and audit?

It can give a shared, tamper-resistant record, which may cut reconciliations and strengthen audit evidence. It cannot confirm that a transaction was valid, so controls over input and judgement are still needed.

Is a distributed ledger the same as blockchain?

No. A distributed ledger is a database shared across many nodes. Blockchain is one type, where data is stored in linked blocks.