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The Critical Role of Financial Auditors in Addressing Cybersecurity Risks in Financial Audits

The Australian Auditing and Assurance Standards Board (AUASB) has recognised the increasing importance of cybersecurity in the financial audit process.

In a recent statement, the AUASB emphasised the need for financial auditors to understand and consider the risks and impacts of cybersecurity on the financial statements they are auditing.

According to the AUASB, financial auditors should be aware of the potential impact of cybersecurity incidents on the financial statements of their clients, including the potential for errors, fraud, and misstatements. They should also be familiar with relevant cybersecurity frameworks, such as the Australian Cyber Security Centre's Essential Eight Maturity Model, and understand how to apply these frameworks to the financial audit process.

The AUASB also highlighted the importance of communication and collaboration between auditors and management in addressing cybersecurity risks. Financial auditors should work with management to understand the organization's cybersecurity controls and assess their effectiveness in mitigating risks. They should also consider the potential impact of cybersecurity on the organisation's internal controls and financial reporting processes.

In addition, the AUASB emphasised the need for financial auditors to remain current on developments in cybersecurity, including new threats and technologies. This includes keeping up to date with relevant professional standards and guidelines, as well as staying informed about trends and best practices in the field.

Overall, the AUASB's view is that financial auditors have a critical role to play in addressing cybersecurity risks and ensuring the accuracy and integrity of financial statements. By understanding the potential impacts of cybersecurity on their clients and taking a proactive approach to addressing these risks, financial auditors can help ensure the reliability and trustworthiness of the financial information they audit.

At Lynden Group, our advisors are well-equipped to help companies navigate the complex landscape of cyber security during their annual financial audit.

With deep expertise in the area of cyber resilience and a thorough understanding of the latest developments in the field, we work closely with clients to ensure that their financial statements accurately reflect the risks and impacts of cyber security.

Whether it's by providing guidance on relevant frameworks, helping to assess the effectiveness of existing cyber security controls, or developing comprehensive cyber security plans and recovery strategies, we strive to be a valuable partner in the journey towards a more secure and resilient future.

So if you're looking to make sure that your financial audit takes cyber security into account, consider working with the experts at Lynden Group.

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