Linking Cybersecurity & Accounting: An Event, Impact, Response Framework

Overview

With recent high-profile cybersecurity breaches and increased practitioner and regulatory attention, organizations are under pressure to consider the accounting implications of these attacks and develop appropriate responses. Specifically, cybersecurity events may affect organizations, operations, financial and non-financial performance and ultimately its stakeholders. To address how cybersecurity issues may affect accounting, this paper presents an Event, Impact, Response Framework to discuss current research and consider implications for both practitioners and researchers. The Framework highlights how practitioners may rely on research findings to better assess cybersecurity threats, understand their impact and develop response strategies. Results encourage additional research examining how (1) organizations identify cybersecurity threats, incidents and breaches, (2) cybersecurity affects different risks and (3) management responses to cybersecurity risks and events. The Framework also suggests the need for cybersecurity research to extend beyond the Accounting Information Systems (AIS) community to areas such as financial accounting, managerial accounting and auditing.