Audit Firm Assessments of Cyber-Security Risk: Evidence from Audit Fees and SEC Comment Letters

IF 2 Q2 BUSINESS, FINANCE

International Journal of Accounting Pub Date : 2019-10-09 DOI:10.1142/s1094406019500136

P. Rosati, Fabian Gogolin, Theo Lynn

引用次数: 19

Abstract

This study investigates the impact of cyber-security incidents on audit fees. Using a sample of 5,687 firms, we find that (i) breached firms are charged 12% higher audit fees, and (ii) firms operating in the same industry of a breached firm are charged 5% higher fees. Finally, using a difference-in-difference regression on a propensity score matched sample, we provide evidence suggesting that auditors do not revise their audit risk assessment following a breach. Overall, these results suggest that the increase in audit fees in the year of a breach is only temporary, and that auditors include cyber-security risk in their audit risk assessment even before an incident occurs. Higher cyber-security risk is ultimately reflected in higher audit fees paid by auditees.

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审计公司对网络安全风险的评估：来自审计费和美国证券交易委员会意见函的证据

本研究探讨网络安全事件对审计费用的影响。使用5,687家事务所的样本，我们发现(i)违规事务所收取的审计费用高出12%，(ii)与违规事务所在同一行业运营的事务所收取的费用高出5%。最后，在倾向得分匹配样本上使用差分回归，我们提供证据表明审计师在违规后不会修改其审计风险评估。总体而言，这些结果表明，审计费用在违规年度的增加只是暂时的，审计人员甚至在事件发生之前就将网络安全风险纳入其审计风险评估。更高的网络安全风险最终反映在被审计单位支付的更高的审计费用上。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Accounting BUSINESS, FINANCE-

CiteScore

1.20

自引率

0.00%

发文量

期刊介绍： The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.