Financial and Legal Practices Flashcards

A client asks a VA to handle their personal banking passwords. What is the most secure practice?

Answer: Use a reputable password manager with shared access controls

A password manager with controlled sharing protects credentials far better than email or plain text.

If a VA processes payments using a client's credit card data, which standard is most relevant?

Answer: PCI DSS

PCI DSS sets security requirements for handling and storing payment card information.

A client in the EU shares customer data with a US VA. Which regulation likely applies to that data?

Answer: GDPR

The GDPR governs personal data of EU residents regardless of where the processor is located.

What should a VA do before deleting a client's financial files at the end of a contract?

Answer: Confirm retention requirements and get written authorization

Records may have legal retention periods, so confirming and getting written approval avoids liability.

A VA notices a client invoice contains a math error overcharging a customer. What is the ethical action?

Answer: Notify the client and correct the error

Flagging and correcting errors maintains honesty and protects the client's reputation.

Which payment method gives a VA the clearest paper trail for bookkeeping?

Answer: Bank transfer or platform with transaction records

Electronic transfers and payment platforms automatically log dates, amounts, and parties.

What does 'scope creep' refer to in a VA contract context?

Answer: Work expanding beyond the agreed terms without new pay

Scope creep is when added tasks exceed the original agreement, often without extra compensation.