ACCA Applied Knowledge · Business and Technology · Financial systems and technology
An accounting firm is considering moving its client records to a public cloud provider. Which of the following is the most significant risk it should assess before doing so?
The most significant risk is loss of control over where and how client data is stored and protected. With a public cloud, data sits on the provider's systems, possibly abroad, creating confidentiality and data protection concerns. Less hardware, automatic updates and scalability are benefits of cloud, not risks.
- ALoss of control over where and how client data is stored and protectedCorrect
- BThe firm will need to buy more office hardware
- CSoftware upgrades must be installed manually on every machine
- DThe firm can no longer scale capacity during busy periods
Explanation
Using a third-party public cloud means data is held on the provider's systems, possibly in other jurisdictions, raising confidentiality, data protection and control concerns. The other options are the opposite of typical cloud features: less hardware, automatic updates and easy scalability.
Did you get it right without looking?
One question tells you little. A timed set on Financial systems and technology shows your real accuracy, how long you take and where you lose marks.
More Financial systems and technology questions
- A company has completed the build of a new accounts receivable system. Before go-live, users process realistic business scenarios to confirm…
- Which stage of the systems development life cycle (SDLC) involves gathering and documenting what users need the new system to do?
- A retailer holds customers' names, addresses and purchase histories. Under typical data protection principles, which action would breach the…
- Orla Co's integrated accounting system automatically posts a sales invoice entered in the sales module to the receivables ledger, the genera…
- Which of the following is the best description of the 'velocity' characteristic of big data?
- In the systems development life cycle, a retail group has documented what its new inventory system must do, including required reports, user…