E1: Chapter 6 – Knowledge Check: How the finance function uses digital technologies

1. Cloud computing can help the finance function in which two of the following ways?

Evita is a management accountant at manufacturing firm Integra. With the recent implementation of cloud accounting software, Evita has been freed up to focus more on higher level, value-added tasks. Integra is now deploying Evita in a “business partnering” capacity. She now goes from department to department on a periodic basis, presenting up-to-date and real-time financial information that is most relevant to each department. There are dedicated spaces at each department where Evita can meet with department representatives and present and discuss the information. Each space is equipped with a large high definition touchscreen television that can be synced with Evita’s tablet. Evita can wirelessly duplicate her tablet screen, upon which she opens her cloud accounting application with several in-built data visualisation tools. Both Evita and department reps can manipulate the various graphs and tables with the touch of their hand. Each manager within each department also has the app installed on their company smartphones, allowing them communicate with Evita and make updates to a selection of figures, subject to verification by Evita.

The above scenario is an example of how process automation in conjunction with ______________is facilitating the transformation of the traditional accounting role into a “business partnering” function.

Choose the fill-in words

2. Which one of the following is a business disadvantage of process automation in the accounting function?

Some have suggested that there is such a thing as an “automation paradox”. From the options below, choose the description that best characterises this phenomenon:

3. In the context of data visualisation, which of the following statements are true?

1. There is no real difference between an old-fashioned printed graphic and data visualisation; at the end of the day, data visualisation just means a graph or a chart
2. The effect of an individual action can be seen across many metrics and charts at the same time, leading to more rounded decision making

Consider the following 4 impacts:

– Communication and flexibility

– Scalability

– Less paperwork

– Instant data visibility

Which of the following technologies generates the above 4 impacts?

5. Which of the following is not part of Forbes’ digital mind set?

4. Which one of the following is not a common feature of a smart contract within the blockchain environment?

Yanis is a management accountant at Werix. He has just finished giving his first ever presentation at the company. In attendance were a number of senior managers from other departments within the company. Yanis is keen to know whether or not he did well, and after the presentation he engages a number of those who were in attendance. He finds that the feedback from his colleagues within the finance department is very positive indeed, and several have evidently come away with some key insights. However, when he speaks with the senior managers from other departments, he notices that, despite some polite praise, they say things which indicate that they have completely misunderstood some of the key numbers and figures that were presented!

Yanis is anxious to know what he might do better next time.

If you were Yanis’s colleague, which of the following technologies would you recommend to ensure that his main points are better understood next time around?

VVBA is a major bank based in the central European country of Sunland. VVBA has made a big push in recent years to modernise its processes and systems. They now boast one of the most user-friendly mobile apps in the market, and have recovered many younger customers they had previously lost to more technologically savvy rivals.

One new feature that VVBA has recently introduced into its mobile app is the ability of customers to take out a loan on demand. The loan facility utilises a highly sophisticated algorithm and advanced data analytics to automatically evaluate each customer’s eligibility, and thereby set the limits, terms and interest rates. At no stage in this process is there any human intervention from VVBA staff – neither in a monitoring nor validation capacity.

Which one of the following statements is most relevant to VVBA?

What does “GDPR” stand for?

Feridox Ltd has recently been working hard to bring its data processing practices into compliance with GDPR legislation. They have ensured that customers know explicitly what their personal data is being used for at the moment they make an online purchase. They have refined their systems to ensure that all personal data received at the point of payment is accurate and up to date. They have also revised one of their previous policies, which required customers to submit a doctor’s report in order to access a particular service. They have now discontinued that policy, and have assured customers in their updated terms and conditions that all previously submitted reports will be kept secure in their system and not used for any other purposes. They also assure customers that in the event that a customer mistakenly submits such a report subsequent to the policy change, that Feridox will keep that information secure in their system and not use it for any other purposes.

True or False: Feridox Ltd has successfully brought itself into compliance with GDPR regulations?

A danger unlikely to arise due to big data technology is which ONE of the following options?

Choose the option below that is NOT considered a downside associated with the utilisation of Big Data:

Traventa Ltd is a company that designs and manufactures home exercise equipment. For a long time, Traventa has dominated its home market. Many analysts assume that Traventa has effectively cornered the market for home exercise equipment. However, the board at Traventa is not happy to rest on its laurels. They call a number of meetings, to which they invite all senior managers and directors to discuss the company’s product range and vision. Senior managers are in turn asked to invite ideas and contributions from staff within their various departments. The board sees a huge amount of technological innovation and change occurring in the wider economy, and are keen to see in what ways Traventa can incorporate some of these innovations and stay 2 steps ahead of their competitors. Finally, it is decided that Traventa is going to produce the first range of “smart” home exercise equipment, leveraging the “internet of things”  and “big data” to allow users to monitor all manner of fitness metrics in real-time.

Traventa is a company that is putting into practice which of the following:

“QuickBooks is a software package developed and marketed by Intuit. QuickBooks products are geared mainly toward small and medium-sized businesses and offers cloud-based software that accepts business payments, manages and pays bills, and delivers payroll functions.”

The above is an example of: