Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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How long should personal data be held according to data protection principles?

Indefinitely
As long as needed
Until requested to delete
Not longer than necessary for its intended purpose

The correct answer is: Not longer than necessary for its intended purpose

Personal data should not be held longer than necessary for its intended purpose due to data protection principles established in regulations such as the General Data Protection Regulation (GDPR). This principle emphasizes the importance of limiting data retention to what is essential for achieving the objectives for which the data was originally collected. By adhering to this principle, organizations ensure that they are safeguarding individuals' privacy rights and reducing the risk of data breaches or misuse of personal information. It requires that once the data has fulfilled its specific purpose—be it for processing, analysis, legal compliance, or service delivery—it should be either deleted or anonymized, thereby preventing unnecessary accumulation of potentially sensitive information. This approach encourages accountability and transparency in data handling practices while instilling a culture of respect towards the privacy of individuals whose data is being processed. Holding data indefinitely, for as long as it’s needed without a specific time frame, or until explicitly requested to be deleted, would undermine these protective measures and could lead to compliance challenges with data protection laws.