Chapter 70 - Information Tech Part 2

Question 1

Organizational Responsibility

Answer 1

Organizations must protect personal and corporate information and use it only for its stated purpose.

Question 2

Consequences of Data Misuse

Answer 2

Legal, financial, and reputational consequences; e.g., Equifax, Uber, Facebook breaches.

Question 3

Privacy Legislation — Canada

Answer 3

Must comply with PIPEDA (federal) and provincial laws like BC’s PIPA.

Question 4

International Privacy Laws

Answer 4

GDPR and California privacy laws apply when dealing with clients in those jurisdictions.

Question 5

Personal Information Definition

Answer 5

Covers more than contact info; requires high levels of protection.

Question 6

General Information Safeguards

Answer 6

Hardware/software access limits, segregation of duties, system documentation, management oversight.

Question 7

External Threat Controls

Answer 7

Firewalls, antivirus, phishing protection, patch updates.

Question 8

Application Controls

Answer 8

Controls over input, processing, output, database, communication, and personnel.

Question 9

End-User Computing Risks

Answer 9

Unmonitored tools (e.g., spreadsheets) can create errors and inconsistent data.

Question 10

Direct Data Access Risks

Answer 10

Employees extracting data into personal applications without audit trails; may compromise accuracy.

Question 11

Mitigation Strategies

Answer 11

Disable exports, use data warehouses, enforce internal controls.

Question 12

Blockchain Definition

Answer 12

A secure, decentralized digital ledger; tamper-resistant and transparent.

Question 13

Blockchain in Banking

Answer 13

Faster payment processing.

Question 14

Blockchain in Cryptocurrency

Answer 14

Foundation for digital currencies like Bitcoin.

Question 15

Blockchain in Legal & Supply Chain

Answer 15

Smart contracts; product origin tracking and authenticity verification.

Question 16

Big Data

Answer 16

Data sets too large for traditional tools; requires advanced computing for processing.

Question 17

Artificial Intelligence (AI)

Answer 17

Simulates human intelligence; automates tasks and supports predictive analytics.

Question 18

AI in Accounting

Answer 18

Automates reconciliations, advanced analytics, predictive/prescriptive decision-making.

Question 19

Real-Time Information

Answer 19

Systems must be networked company-wide for timely, accurate, and consistent financial info.

Question 20

Cloud/Hosted Solutions — SaaS

Answer 20

Subscription-based software hosted by vendors (e.g., cloud accounting apps).

Question 21

Cloud/Hosted Solutions — IaaS

Answer 21

On-demand cloud infrastructure: servers, storage, computing power.

Question 22

Cloud Benefits & Risks

Answer 22

Lower cost, faster implementation; risks include privacy, service interruptions, vendor dependency.

Question 23

Systems Reliability — Privacy & Confidentiality

Answer 23

Ensure lawful data collection, storage, and sharing; protect employee and financial data.

Question 24

Systems Reliability — Security, Integrity, Availability

Answer 24

Access controls, accurate and complete data, consistent availability with role-based access.

Question 25

XML & XBRL

Answer 25

XML: Encodes documents for standardized sharing. XBRL: Machine-readable financial reporting for ASPE/IFRS, improves regulator/investor access.