Personal data is a valuable and critical asset for all organizations today, and its treatment entails an increasing legal and ethical responsibility. This is why Colombia has created regulations for the protection of personal data aimed at both unifying concepts and generating significant changes in most areas of companies. In this Blog we will focus specifically on analyzing the impact of the personal data protection law in the context of accounting.
Accounting involves the management of a large amount of financial and operational information, and in most cases, this information may include personal data. In fact, the tax statute places, by law, the accounting area as one of the largest agents of collection of personal information; therefore, they must include this type of data in invoices, credit notes, debit notes, in vouchers and payment orders, in manufacturing pakistan mobile phone number data orders, customer files, daily entries, salary and commission receipts, mandatory contribution payments, sworn statements, etc.; and what is more, from the information contained in the vouchers listed above, it is possible to determine the economic income and the level of consumption of goods and services by the people registered in the accounting, in addition to their tastes and preferences for specific brands and products.
From a technical and administrative point of view, the accounting area is impacted by the personal data protection regulations given the new tasks that must be incorporated into its processes, such as:
1- Data Anonymization: In certain cases, it is necessary to anonymize or de-identify personal data before using it in accounting processes; this may include having to remove names, addresses or other identifying information to ensure that some databases or their records cannot be linked to specific individuals.
2- Obtaining consent from Data Owners : While it is true that tax regulations require that Owners provide some minimum information for billing purposes, it is also true that a significant number of records will require prior authorization for the use of the data, which forces the area to be aware of this matter.
3- Registration and Documentation: Organizations must carry out an inventory of personal data and record how it is handled within the processes, especially when such data is modified or deleted. This activity implies a greater administrative burden on the accounting operation.
4- Audit and Internal Control: Audit and internal control are essential components of accounting that are influenced by the personal data protection law. The audit is responsible for verifying that accounting processes and records comply with established standards and regulations, which means that an assessment of compliance with personal data protection must be carried out, which will involve:
a) Evaluate the risks associated with the handling of personal data and ensure that appropriate measures have been implemented to mitigate them.
b) Verify restricted access to accounting systems, ensuring that only authorized personnel can access this information. Auditors must verify that access controls are effective.
c) Verify restricted access to sensitive data by evaluating specific protocols that ensure access complies with regulations.
b) Guarantee the confidentiality and privacy of information during the different processes of the area, which implies more controls on personnel and supervision of external accounting audit processes.