CPA firms or large accounting firms consist of certain professionals engaged with accounting and tax matters. These certified public accountants are professionals involved in financial dealings and accounting tasks who have passed the CPA exam and meet certain requirements set by the government.

Why do CPA Firms require cybersecurity measures?

CPA firms deal with sensitive data such as the financial information of corporations, personal transactions, audit files, and tax information. With the advent of the digitalization of these sensitive data, these firms have been becoming prone to cybersecurity threats. These threats can be internal such as employees or external hackers. Also, once the information is compromised, CPA firms also face reputational threats.

The AICPA provides resources to help organizations and businesses, including CPA firms, assess risks. Rule 301 of AICPA declares that the violation of any of this sensitive information due to the mistake of CPA firms would be considered ethical misconduct.

Cybersecurity measures according to IRS Standards for CPA firms

All CPA firms need to follow some basic points and standards for ensuring cybersecurity to protect their goldmine of sensitive data. Some of these cybersecurity measures are as follows,

• Data Security Plan– The IRS standards emphasize increasing data security. IRS standards stipulate having a data security plan as a cybersecurity measure. Your defensive measures need to alter as your business and security requirements do.
• Review Information– The sensitive data needs to be monitored and reviewed timely. The frequent clearing out of unnecessary data will lower the data prone to a cybersecurity threat.
• Education– Over 90% of all data thefts, according to the IRS, begin with a phishing email. Hence, there is a great need for all the employees of CPA firms to be educated and trained about cybersecurity threats and security.
• Cyber Incident Insurance– Even though we also need to have cybersecurity measures in place, there is no guarantee of total security of our data. Hence, it is important to have a structured plan in case of a cybersecurity threat. This plan should entail the CPA firms having cyber incident insurance.
• Deployment of Security Measures– CPA businesses must develop and effectively utilize security measures in order to improve data security and prevent cybercrimes. The methods listed below might help you maintain the benefits of security software.

1. Encrypt data to make it difficult to decrypt even if it is accidentally released. Encryption functions are offered by the vast majority of hardware and software.
2. You need the following to add an additional layer of security:

• Tough-to-crack passwords that are strong. Avoid using passwords that are all letters, all numbers, or both. Combine capital letters, small alphabets, digits, and special characters to create a secure password.
• To ensure secure access, use two-factor authentication wherever it is practical.
• Have a robust network, Implement best practices viz Install a firewall etc.

Cybersecurity attacks are very much real, and cybersecurity measures need to be stipulated. IRS defines cybersecurity measures that every corporation, especially CPA firms are expected to follow.

We here at RytBooks follow all security protocols very seriously, you can worry-free outsource your book-keeping to us. Contact us today for more on how we can partner together or know more how you can strengthen your cybersecurity measures!