Integrating Cybersecurity into Accounting: Leveraging Data from New Disclosure Requirements

Project: Research

Project Details

Description

Cybersecurity risk has become a critical challenge in today’s digital economy, affecting individuals, businesses, and governments alike. As companies increasingly rely on technology, they face growing exposure to cyberattacks that threaten economic stability, data privacy, and public trust. This issue is particularly pressing for accounting education, as financial data remains a prime target for cyber threats, fraud, and regulatory scrutiny. Accounting educators must equip students with the skills to navigate these risks, which can compromise financial reporting, weaken internal controls, and challenge compliance with regulations such as SOX 404. With the widespread adoption of digital accounting systems, future accountants must understand cybersecurity’s role in fraud detection, risk assessment, and financial integrity. Integrating cybersecurity into accounting curricula is essential to preparing students for the evolving financial landscape.However, incorporating cybersecurity risk into accounting courses presents significant challenges. First, many accounting educators lack specialized expertise in cybersecurity, as it has traditionally been an IT-focused discipline, making it difficult to confidently teach topics such as cyber fraud, data breaches, and encryption. Second, the rapidly evolving nature of cyber threats, along with a lack of relevant teaching materials, makes it challenging to keep course content current and aligned with industry practices. Third, most accounting programs lack hands-on cybersecurity training tools, such as case-based exercises or simulations, limiting students’ ability to apply theoretical knowledge to real-world scenarios.This proposal seeks to address these challenges by leveraging the new SEC cybersecurity disclosure rules, which require public companies to report material cybersecurity incidents and outline their risk management strategies and governance processes. This unprecedented availability of data provides a unique opportunity to enhance accounting education by integrating real-world cybersecurity cases into the curriculum. By analyzing these disclosures, students can gain practical insights into how businesses assess and manage cyber risks, reinforcing the connection between cybersecurity and financial oversight.To achieve this, we seek funding under the Teaching Start-Up Grant to collect and analyze cybersecurity risk data disclosed by public companies under the SEC’s new regulations. This data will be used to develop interactive, up-to-date teaching materials, including case studies, analytics exercises, and simulation-based learning modules. These resources will enhance the rigor and relevance of accounting education, equipping students with the skills needed to assess cyber risks and collaborate with IT security teams. Additionally, given the growing entrepreneurial opportunities in the cybersecurity space, this initiative will cultivate students’ entrepreneurial spirit, fostering innovation at the intersection of accounting and cybersecurity.By integrating cybersecurity risk into accounting education, this initiative will bridge the knowledge gap, provide practical learning experiences, and ensure that students graduate with the expertise needed to navigate cybersecurity challenges in financial reporting and risk management.
Project number6000925
Grant typeTDG(CityU)
StatusActive
Effective start/end date16/06/25 → …

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