Regulators, investors, and other stakeholders have a growing interest in understanding the impact of cybersecurity risks on the global economy.
In its January 2021 Global Risks report, The World Economic Forum ranked cybersecurity failure as among the highest likelihood risks of the next 10 years. It is a strategic imperative that companies promote cybersecurity resilience and build trust in their cybersecurity practices.
Learn more about the role auditors play in cybersecurity today and in the future
Technological advancements and a workforce that is increasingly remote means that companies are faced with an evolving cybersecurity risk landscape. In particular, remote work has exposed new vulnerabilities and brought a surge in data breaches, ransomware, business email compromises, and phishing attempts.
In the context of the audit of the financial statements, public company auditors have a responsibility to evaluate the potential for cybersecurity incidents to impact the financial statements. Auditing standards require the auditor to obtain an understanding of how the company uses information technology (IT) and the influence of IT on the financial statements.
As technology and our financial reporting landscape continue to evolve, we expect the auditor’s role to shift to meet the growing demand. The CAQ is committed to illuminating the role of auditors in this critical area.
Explore our cybersecurity resources below.