Cybersecurity Risk Considerations in a Financial Statements Audit

Cybersecurity risk is a business threat that is becoming increasingly common and can pose immense challenges to entities in the current business environment. Over the years, cyber attacks have continued to proliferate, escalating in frequency, severity and impact, and impacting every industry. 

This leads to the question of whether cybersecurity risk is relevant to the audits of financial statements, and the extent of the financial statements auditor’s role. Does the financial statements auditor need to consider the cybersecurity risk of their client when planning and performing the audit? 

Produced by ISCA with contributions from PwC Singapore, this publication demonstrates how cybersecurity risk and cyber attacks can impact an entity’s financial statements and its related audit. It also provides guidance on how cybersecurity risk considerations can be incorporated as part of risk assessment during audit planning, as well as the appropriate audit responses to the cybersecurity risk identified and cyber incidents that have occurred.