Q.Why is data security important in a computerised accounting system? Explain any two measures used to protect accounting data.

Since a computerised system stores a business's entire financial history electronically, protecting that data from loss or misuse is essential.

A computerised accounting system stores a business's entire financial history electronically, which makes protecting that data just as important as recording it correctly in the first place. Without proper security, accounting data can be accidentally deleted, damaged through hardware failure, or accessed and altered by someone not authorised to see it — any of which could seriously harm a business relying on those records being accurate and confidential.

Two important measures used to protect accounting data:

1. Passwords and user-level access. Every person who uses the system is given their own login and is allowed to view or change only the parts of the accounting data relevant to their own role — for example, a sales clerk need not be able to alter the master ledger. This both restricts who can access sensitive data and creates a record of who entered or changed particular figures. …