How should organizations protect confidentiality and data integrity in accounting information systems?

• A. Keep all data open to all employees.
• B. Confidentiality is not important.
• C. Implement access controls, encryption, auditing, data classification, secure disposal, and policies limiting data exposure to authorized personnel; monitor for breaches.
• D. Only use physical security measures.

Answer: (C)

Protecting confidentiality and data integrity in accounting information systems relies on layered controls that govern who can access data, how data is protected, and how activities are monitored and responded to. The best approach combines multiple safeguards that work together: access controls ensure only authorized people can view or modify data; encryption protects information both when stored and when it’s transmitted, so even if access is gained, the data remains unreadable; auditing creates a record of who did what and when, helping detect and deter tampering or misuse; data classification helps assign appropriate protections based on sensitivity, so the most critical data receives stronger controls; secure disposal prevents remnants of data from being recovered after it’s no longer needed; policies that limit data exposure reinforce consistent behavior and compliance; and ongoing monitoring helps detect breaches quickly and trigger appropriate responses. Together, these elements address both confidentiality and integrity by preventing unauthorized access, preserving data accuracy and completeness, and enabling timely detection and response to any security events.

Choosing only physical security measures misses the realities of modern information systems, where data protection also depends on digital safeguards. Treating confidentiality as unimportant or keeping data open to all employees directly undermines trust and increases the risk of data leaks or misuse. Therefore, a comprehensive, layered set of controls is essential to maintain both confidentiality and data integrity in accounting information systems.