Specifications

Computer Tutorial 3 Lesson 7  13
type of service for a fee. Banks are also good choices because most backup media are small
enough to fit into a safety deposit box. If neither is feasible, the next best alternative is a
fireproof safe or locked cabinet in another office or branch of the same organization, but
located in another building. Backup copies stored in another building must be protected in the
same way as backup copies stored on-site.
Many organizations ask their accountant or manager to take home backup copies of their
general ledger data files to provide off-site storage. This practice has some advantage, but is
fraught with problems. The trunk of a car or a desk drawer in a basement are not ideal places
to store confidential information. Neither is suitable for long-term storage of computer media
because of the risk of temperature and humidity changes. Furthermore, any dispute with the
accountant or manager over the terms and conditions of employment may make recovery of
the backup copies difficult.
Handle printed output properly
If the general ledger information is considered confidential by the organization, appropriate
care must be taken in the handling of printed output. Draft copies of the trial balance,
financial statements, and general ledger listings should be shredded when no longer required.
It goes without saying that copies of these, and other confidential materials, should never be
left lying around for anyone to see.
Only authorized individuals should have access to the confidential printouts. The storage area
for confidential material should be locked when not in use.
TOPIC 7.8
Self-testing questions
1. Your friend wants to set up a chart of accounts using Accpac. She has been told that
it is possible to use descriptive names for accounts rather than account numbers, an
idea that greatly appeals to her. Her general ledger will need about 350 different
accounts. Explain to your friend the advantages and disadvantages of using
descriptive account names rather than numeric account codes. What advice would
you give her?
2. Is it necessary to have a structured chart of accounts in Accpac? For example, can the
chart of accounts start with expense accounts, followed by asset accounts, revenue
accounts, liabilities, and equity accounts?
3. Why is it necessary to file and keep the posted journals?
4. Is it necessary to print the transactions listing at all? If the transactions listing is not
printed, can the general ledger still be closed?
5. Why is it necessary to protect the general ledger data from unauthorized access?
6. Bob is the owner of a small manufacturing firm. His accountant, Mary-Ann, insists
that it is critical to store at least one backup copy of the general ledger off-site. She
suggests her basement as an ideal storage site because she can get to the backup copy
easily. Is this good advice? Why or why not?
7. Suppose that two individuals share one computer. Of the two, only one is allowed
access to the general ledger data. What mechanism best provides this control?