Accounting Practices 5

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The following is the question. Your answers must be thorough and detailed, avoid brevity.  These questions required you to think these issues through. 

Question:  To address the need for tighter data controls and lower support costs, the Ashley Company has adopted a new diskless PC system. It is little more than a mutilated personal computer described as a 'gutless wonder.'  The basic concept behind the diskless PC is simple: A LAN server-based file system of high-powered diskless workstations is spread throughout a company and connect with a central repository or mainframe. The network improves control by limiting user access to company data previously stored on desktop hard disks.  Since the user can destroy or delete only the information currently on the screen, an organization's financial data are protected from user-instigated catastrophes.  The diskless computer also saves money in user support costs by distributing applications and upgrades automatically, and by offering online help.

1.  What threats in the information processing and storage system do diskless PCs minimize?

2.  Do the security advantages of the new system outweigh potential limitations?  Discuss.