Cyber security a top risk concern
Cyber security risks and additional financial reporting controls brought about by the global health crisis and a virtual work environment kept financial executives up at night, according to a survey by U.S. audit, tax and advisory firm KPMG LLP.
More than 91 percent of the financial executives surveyed during KPMG’s 30th Annual Accounting & Financial Reporting Symposium said that the global health crisis had an impact on their financial reporting processes.
“It’s no surprise that COVID-19, and the resulting changes to companies’ financial reporting and controls, were top of mind for most financial executives,” said KPMG National Managing Partner – Audit Quality and Professional Practice Christian Peo. “Just as companies have thought through and will continue to think through changes in processes and controls, auditors have had to work through changes in planning and executing our audits during the pandemic.”
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The Symposium, held virtually for the first time, drew over 400 participants from across the country and provided financial executives with valuable insights on how to successfully navigate the rapidly evolving business environment. Each year, the Symposium offers in-depth updates on important financial accounting and reporting developments from the past year, as well as insights into what to expect in the future.
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“This year’s Symposium featured a network of KPMG thought leaders who shared the latest information about going concern, discontinued operations, business combinations, environmental, social and governance issues and leadership,” said KPMG National Managing Partner – Audit Operations and Execution Bill Tomazin. “These topics are important for financial executives to consider when focusing on financial reporting ahead of the close of the calendar year.”
The survey also found:
- 53 percent of respondents said that disclosures around risks, management discussion and analysis, liquidity and other trends were the COVID-19 issues that required the most significant time investment.
- 87 percent identified cyber incidents as the top risk to their organization.
- A little over half of respondents said that their concerns about cyber security have increased in the past year.
- 79 percent said that digital transformation is important or extremely important to their company.
- Regulatory mandates, which had been the leading concern last year, ranked second, with nearly 20 percent of respondents listing it as a top concern.
