Accounting Software & Systems
Data Integrity & Controls
6 question(s)
Why is data integrity important in accounting systems?
Beginner
Financial decisions, statements and compliance depend on accurate, complete and consistent data; poor integrity leads to misstatements and lost trust.
Duplicate invoices -> overstated expenses and wrong profit
Real-world example
One bad master record can ripple errors across every report.
What access controls and segregation of duties apply in accounting software?
Intermediate
Role-based permissions restrict who can create, approve and post; no single person should control a whole transaction (e.g. create a vendor and pay it).
AP clerk enters bills; a different manager approves payments
Real-world example
Segregation of duties prevents one person from committing and hiding fraud.
What is an audit trail and why does it matter?
Intermediate
An immutable log of who did what and when (created, edited, posted, deleted), enabling investigation and providing assurance to auditors.
Log: user J.Smith edited Invoice 1001 amount at 14:32
Real-world example
Auditors trace a suspicious change back to the user and time.
What are IT general controls (ITGCs) and how do they relate to SOX?
Advanced
ITGCs cover access management, change management, and operations of the systems supporting financial reporting; SOX requires companies to test that these controls work.
Access reviews, change approvals, backup/monitoring over the ERP
Real-world example
SOX audits test that only authorised users can post and that changes are approved.
What data validation controls prevent errors at entry?
Intermediate
Mandatory fields, format and range checks, duplicate detection, valid account/tax code lists, and reconciliations of interfaced data.
Reject invoice if vendor bank details changed without approval
Real-world example
Validation blocks a mistyped or duplicate invoice before it posts.
Why are backups and disaster recovery important for accounting data?
Beginner
They protect the financial records against loss, corruption or ransomware, ensuring the business can restore its books and keep operating.
Nightly backup + tested restore + offsite copy
Real-world example
After a ransomware attack, a tested backup lets finance recover the ledger.