Public Company Accounting Oversight Board (PCAOB) Focuses on Cybersecurity at Standing Advisory Group Meeting

Jul 23

Article By: Linda L. Griggs, Sean M. Donahue Morgan, Lewis & Bockius LLP

Panelists at the PCAOB’s June 25 Standing Advisory Group Meeting discussed cybersecurity and the potential implications for financial reporting and auditing. Some of the highlights from the panel include the following:

Companies need internal controls to prevent and detect cyber attacks generally, including controls to prevent and, more importantly, detect a cyber attack on a company’s information technology (IT) accounting system.
Companies should continually assess the controls related to their IT accounting system to ensure that the controls are up to date.
A cyber attack of a company’s IT accounting system could involve, or could suggest the risk of, manipulation by the cyber attacker of the company’s books and records, which could affect financial statements.

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