Assurance Flash Report - March 2014
Cybersecurity has rapidly become a significant risk to businesses as breaches of information may result in financial and reputational damage, diminished investor confidence, and exposure to potential regulatory fines. The topic has captured the attention of Congress as well as regulatory agencies and is becoming an increasing point of focus for company boards in their oversight of risk management. In response to increasing concerns around cybersecurity risk management, the Center for Audit Quality recently issued Member Alert #2014-3: Cybersecurity and the External Audit to summarize the responsibilities of the independent external auditor with respect to cybersecurity matters. While this alert is focused on issues facing public companies and their external auditors, these issues would similarly apply to non-public entities.