ICAP CAF CAF-3: Data, Systems and Risks Syllabus

How does a data warehouse differ from a data mart?

A data warehouse is enterprise-wide, covering all subject areas. A data mart is a smaller, focused subset of a warehouse serving a specific department or business function.

What is a data lake and how does it differ from a data warehouse?

A data lake stores vast amounts of raw, unstructured and structured data in its native format until needed. A data warehouse stores cleaned, structured, processed data organised for specific analytical use.

What does ETL stand for and what are its three stages?

Extract, Transform, Load. Extract: pull data from source systems. Transform: clean, format, standardise and integrate the data. Load: write the prepared data into the target system (e.g. data warehouse).

How does ELT differ from ETL?

In ELT (Extract, Load, Transform) raw data is loaded into the target system first and transformed afterwards inside it, leveraging the target's processing power; in ETL transformation happens before loading.

What is a Database Management System (DBMS)?

Software that enables users to create, store, retrieve, update and manage data in a database, controlling access, integrity, security and concurrency.

List key advantages of using a DBMS over file-based systems.

Reduced data redundancy, improved data integrity and consistency, data sharing, better security and access control, data independence, backup/recovery, and concurrent multi-user access.

What is a relational database?

A database that stores data in tables (relations) made of rows and columns, where tables are linked through primary and foreign keys, and queried using SQL.

Distinguish a primary key from a foreign key.

A primary key uniquely identifies each record in a table. A foreign key is a field in one table that refers to the primary key of another table, establishing a relationship between them.

What is the difference between hardware and software?

Hardware is the physical components of a computer system (CPU, memory, storage, input/output devices). Software is the set of programs/instructions that tell the hardware what to do (system and application software).

Distinguish system software from application software.

System software manages the computer and its resources (operating systems, utilities, device drivers). Application software performs specific user tasks (word processors, accounting packages, spreadsheets).

Distinguish a LAN from a WAN.

A LAN (Local Area Network) connects devices within a small geographic area such as one building/office. A WAN (Wide Area Network) connects networks over large geographic areas, such as across cities or countries (the Internet is the largest WAN).

What is a network topology? Name common types.

The physical or logical arrangement of devices in a network. Common types: Bus, Star, Ring, Mesh, and Tree/Hybrid.

How can ICT improve organisational efficiency?

By automating routine tasks, speeding processing, reducing errors, improving communication and collaboration, enabling real-time information, reducing costs, supporting better decision-making, and improving customer service.

What factors determine the adequacy of systems, processes and controls?

Whether they meet business objectives, ensure data accuracy and completeness, are reliable and secure, are cost-effective, comply with laws/standards, are scalable, and include adequate controls and audit trails.

What is an ERP system?

Enterprise Resource Planning: integrated software that manages and connects an organisation's core business processes (finance, HR, supply chain, manufacturing, sales) through a single shared database in real time.

State two key benefits and two key risks of ERP systems.

Benefits: integration of processes/data and improved real-time information and efficiency. Risks: high cost and complexity of implementation, and business disruption/dependence on a single system (single point of failure).

What is cloud computing?

The delivery of computing services (servers, storage, software, databases, networking) over the internet on demand, typically paid for on a usage basis rather than owning the infrastructure.

Distinguish IaaS, PaaS and SaaS.

IaaS (Infrastructure as a Service): rents fundamental computing resources (servers, storage). PaaS (Platform as a Service): provides a platform to develop and deploy applications. SaaS (Software as a Service): delivers ready-to-use applications over the internet.

State two advantages and two disadvantages of cloud computing.

Advantages: scalability/flexibility and lower upfront capital cost (pay-as-you-go). Disadvantages: dependence on internet/provider and data security/privacy and loss-of-control concerns.

What is IT governance?

The framework ensuring that IT investments support business objectives, deliver value, manage risks and resources effectively, and align IT strategy with organisational strategy, with clear accountability.

Name two widely used IT governance/control frameworks.

COBIT (Control Objectives for Information and Related Technologies) and ITIL (IT Infrastructure Library); ISO/IEC 27001 is also used for information security management.

What is COBIT?

A framework developed by ISACA for the governance and management of enterprise IT, providing control objectives, processes and metrics to align IT with business goals and manage IT risk.

How is Return on Investment (ROI) calculated?

ROI = (Net Benefit / Cost of Investment) x 100, where Net Benefit = Total benefits (or gains) minus the cost of the investment. It measures the gain relative to the cost of an IT investment.

List examples of emerging technologies relevant to accountancy.

Artificial Intelligence/Machine Learning, Blockchain, Robotic Process Automation (RPA), Internet of Things (IoT), Cloud computing, Big Data analytics, and 3D printing.

What is blockchain?

A distributed, decentralised digital ledger that records transactions across many computers in linked, cryptographically secured blocks so that records cannot be altered retrospectively without altering all subsequent blocks and network consensus.

What is Robotic Process Automation (RPA)?

Software 'bots' that automate repetitive, rule-based digital tasks (such as data entry, reconciliations and report generation) by mimicking human interactions with applications.

What is digital disruption and how does it affect the accountancy profession?

Digital disruption is the transformation of business caused by emerging digital technologies. For accountants it automates routine bookkeeping/compliance, shifts the role toward advisory, analytics and assurance over technology, and demands new digital skills.

Distinguish physical and logical (digital) IT risks/threats.

Physical threats relate to hardware/environment: theft, fire, flood, power failure, physical damage. Logical/digital threats relate to data and systems: hacking, malware, unauthorised access, data corruption, denial-of-service attacks.

Define the CIA triad of information security.

Confidentiality (data accessible only to authorised users), Integrity (data is accurate, complete and unaltered), and Availability (data and systems are accessible when needed).

What are IT General Controls (ITGCs)? Give the main categories.

Controls over the IT environment that support reliable application processing. Main categories: access security/logical access controls, change management, program development, and computer/IT operations (including backups).