As U.S. public companies brace for wide-ranging changes to accounting standards, the U.S. Securities and Exchange Commission (SEC) wants corporate accountants and financial executives to have something else on their minds: cybersecurity.
Experts described the SEC’s recent Report of Investigation as “unusual,” as the regulator urged public companies to consider cybersecurity as they develop their internal accounting controls. In its report, published earlier this month, the SEC said it had explored the possibility that companies that feel subject to “cyber-related frauds” may have actually violated federal law.
The consideration by the SEC is that public companies hit by a cyberattack failed to adequately develop their internal accounting controls, pointing to the millions of dollars lost by firms as a result of a cyberattack.
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