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ACCA Applied Knowledge · Business and Technology · The impact of advances in technology

Which of the following is a recognised risk for a business that moves its accounting systems to a cloud provider?

A recognised risk is dependence on the cloud provider for security, availability and continued service. If the provider suffers a breach or outage, the business is affected. Remote access and avoiding extra hardware for peak demand are benefits, not risks.

  1. AIt loses the ability to access data from more than one location
  2. BIt becomes dependent on the provider's security, availability and continued serviceCorrect
  3. CIt must buy additional hardware to cope with peak demand

Explanation

Cloud use creates reliance on the provider for security, uptime and data handling, and raises issues such as data location and vendor lock-in. Remote access is a benefit, and avoiding extra hardware for peaks is an advantage of cloud scalability.

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