CPA’s are responsible for understanding (1) the presence of fraudulent activity, (2) that financial reports are complete and accurate, and (3) applying the going concern principle to a business. Appropriate cybersecurity controls, processes and oversight directly impact these three areas.
Bad actors can exploit systems with weak security controls to perform fraud. The increasing prevalence of hacked systems reflect this. Bad actors are stealing data, intellectual property, financial assets, and other information. Digital fraud is becoming more prevalent and can be substantially more damaging than historical types of fraud. Not only can digital fraud result in financial loss, but it can subject companies to expensive lawsuits, damage reputations and can even put a company out of business.
Complete & Accurate Financial Reports
Having cybersecurity controls on systems and networks is critical to ensure information reported in financial statements is complete and accurate. Data residing in financial reports is processed, stored and transmitted using IT Systems. It is important for CPA’s to understand the required cybersecurity controls to prevent or detect inaccurate data in financial reports.
With an increasing volume of system hacks (e.g. Target, Experian, Sony, and most recently the US Government), it is no longer “if” you’re going to get hacked, it is “When.” If organizations do not have appropriate cybersecurity controls in place to protect against an attack, then a malicious hack can put them out of business. An organization’s cybersecurity posture should be a factor in evaluating the Principle of Going Concern.
This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.Learning Objectives:
After attending this presentation you will be able to...
- Understand how weak cybersecurity controls enable fraud
- Understand cybersecurity methodology for ensuring data integrity of financial reports
- Understand how an effective cybersecurity program impacts the principle of going concern
The major topics that will be covered in this class include:
- Recent cybersecurity attacks, their implications, and how weak cybersecurity controls enabled their success
- Specific cybersecurity controls that help prevent fraud and support data integrity of financial reports
- How an effective cybersecurity program is needed to reduce losses, prevent fraud, avoid reputational damage, and protect critical data assets
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