analyze the effects of the SEC‘s data breach disclosure requirement on financial
ID: 2419695 • Letter: A
Question
analyze the effects of the SEC‘s data breach disclosure requirement on financial reporting, based on the current language of the requirement. Recommend a change to the disclosure requirements to strengthen public company disclosures of cyberattacks. Provide support for your rationale.
Examine the impact of cyberattacks on potential investors in a public company. As an auditor, provide your recommendations for including the potential of a cyberattack in the 10-K, as opposed to an actual attack. Provide support for your recommendation.
Explanation / Answer
Every business has confidential information pertaining to business. Under this confidential category, the customer base is also part of it. In this regard, while meeting the SEC disclosure, it is very difficult to share the information that are very sensitive in nature. We often come across with many complaints from the companies that, their data has been theft as a result of which, the company has to lose lots of dealings and also losing many potential opportunities. As a threat of the Cyberattacks, every company is hesitant of meeting this SEC disclosure. Hence it may be bring in a change like, under the disclosure , the details should be generic and if specific details are needed, then the same may be produced going forward.
The impact of cybercrime is huge and as a consequence of cyber crime, no potential investor would be thinking of investing in the company. As an auditor, I may say that, when it is mentioned more details in the form 10K, then we may say that , the propensity of Cyber attack will go up
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