Assume that the association has no influence over the representative’s actions. They can consequently lose their high-valve accounting resources as a result. You can learn how to effectively protect accounting security against insider threats with online cybersecurity courses. Be sure they know how to identify and report IT security issues and help keep your accounting firm safe from potential attacks.
In the assurance stage, reporting organizations can foster the credibility of their cybersecurity reporting by procuring independent assurance of their description and control criteria. To facilitate the provision of this assurance service, the AICPA (2017b) has issued cybersecurity attestation criteria. In the following section, we describe how accountants can, in their advisory and/or assurance capacities, enhance cybersecurity efforts within each stage. Some think that cyber security and data security are not linked to the accounting life cycle.
Strong password policies
In fact, cybercriminals are creating more sophisticated hacks and unleashing them on companies of all types, particularly those dealing in finance. Another tip is to regularly back up financial data to secure offsite locations or cloud-based platforms. That way, you can restore critical information in the event of a data breach or system failure. Add an extra layer of security with an additional verification factor that stretches beyond passwords. For instance, users can receive a unique code to their smartphones when signing in.
Thus, companies like Target, Home Depot, and the countless others that have experienced prior cybersecurity incidents should consider external cybersecurity reporting such as the AICPA Framework. In fact, Frank et al. (2019) find that external cybersecurity reporting also promotes investor confidence for firms that have not experienced cybersecurity incidents. In sum, Home Depot’s controls were insufficient to prevent the incident, creating valuable lessons for other companies about the importance of cybersecurity controls. For instance, the use of multifactor authentication for vendors would have greatly minimized the possibility that an intruder could access the system with a stolen username and password. Standardizing remote access methodologies for vendors would also have been beneficial.
LIMIT TAX LIABILITY AND MAXIMIZE BUSINESS AND PERSONAL TAX SAVINGS
Remember, accidental data sharing is common, and about 80% of data breaches are caused by internal human errors. Constructing an approval and validation system helps ensure no mistakes are made that would jeopardize your data. As the number of cybersecurity incidents continue to rise and stakeholders are becoming increasingly concerned, companies are devoting considerable resources to their cybersecurity risk management efforts and related cybersecurity disclosures.
- Developing and implementing an incident response plan in case there is a security breach (which you hope never happens).
- You may think criminals only want to hack the financial data of enterprise size or large businesses?
- Your data will remain safe, and you will save time and eliminate frustration.
- Customer personally identifiable information (PII) has an average cost of $150 per record per breach.
- Dmytro Lazarchuk is a cofounder and CEO of Relokia with over eight years of experience in digital marketing and data migration services.
