In an era where cyber threats are escalating in both frequency and sophistication, businesses are under immense pressure to protect sensitive data and maintain regulatory compliance. With the average cost of a data breach now at $4.88 million and new SEC rules mandating disclosure of material cyber incidents within four days, cybersecurity has become a boardroom priority. Surprisingly to some, accounting firms are uniquely positioned to help clients meet these challenges head-on.
From Financial Controls to Cyber Controls
Accounting professionals are already experts in internal controls, access permissions, and compliance—principles that are foundational to cybersecurity. This makes them natural allies in the effort to strengthen cyber defenses. By applying their knowledge of risk management and regulatory frameworks, accounting firms can help clients identify vulnerabilities, assess exposure, and implement effective safeguards.
Navigating New SEC Cyber Rules
The SEC’s updated regulations, effective December 2023, require public companies to report material cyber incidents via Form 8-K within four business days. Additionally, companies must now include cybersecurity governance, risk management, and strategy in their annual Form 10-K. Accounting firms can guide clients through these new requirements by helping them document incident response plans, define governance structures, and ensure readiness for rapid disclosure.
Cyber Risk Assessments and Advisory Services
Expanding beyond traditional audit and tax services, accounting firms can offer cybersecurity risk assessments. These reviews can uncover outdated software, weak access controls, and other vulnerabilities that could be exploited by attackers. By integrating cybersecurity into broader risk management strategies, firms help clients build a more resilient business foundation.
Championing Cyber Hygiene
Good cyber hygiene—like keeping software updated, using multi-factor authentication, and training employees to recognize phishing attempts—can significantly reduce risk. Accounting firms can promote these practices during audits and advisory engagements, reinforcing the importance of proactive security measures.
Bridging the Gap Between IT and Finance
One of the most valuable roles accounting firms can play is as a bridge between IT and finance teams. By facilitating communication and aligning cybersecurity goals with business objectives, they help ensure that cybersecurity is not just a technical issue but a strategic priority.
Conclusion:
Cybersecurity is no longer optional—it’s essential. As trusted advisors, accounting firms have a powerful opportunity to lead the charge in helping clients protect their data, comply with regulations, and build a secure future. By expanding their role to include cybersecurity advisory, firms not only add value but also help shape a safer, more resilient business environment.
