Data Security in a Computerised Accounting System

Because a computerised accounting system stores an organisation's entire financial record electronically, protecting that data from loss, damage, or unauthorised access is essential. The Balbharati textbook lists several standard measures used to secure data in a computerised accounting system.

1. Password protection. Access to the accounting software, and often to specific parts of it, is restricted by a password, so that only authorised persons can open the system at all.

2. User-wise access rights (levels of authority). Different users are given different levels of access — for example, a data-entry operator may be allowed only to enter vouchers, while only a senior accountant or the business owner may be permitted to alter master data or view certain sensitive reports.

3. Regular data backup. Copies of the data are taken at regular intervals and stored on a separate medium (an external drive, a separate server, or secure cloud storage) so that if the original data is lost or corrupted, it can be restored from the backup.

4. Audit trail. The software keeps a log of who entered, altered, or deleted which voucher or master, and when, making it possible to trace any change back to the person responsible.

5. Antivirus software and firewalls. These protect the computer system from viruses and unauthorised access over a network or the internet.

6. Physical security of hardware. The computers, servers, and backup media themselves must be kept in a physically secure location, protected from theft, fire, and unauthorised physical access.

7. Restricting use of external storage devices. Limiting or controlling the use of devices such as USB drives on office computers reduces the risk of data being copied out, or of a virus being introduced, without authorisation.

8. Uninterrupted power supply (UPS). A power backup unit allows the system to be shut down safely during a power failure, preventing the data corruption that an abrupt power loss can cause. …