Evaluating the role of cybersecurity audits in protecting the US capital market

Onyekwuluje, Taiwo Paul and Bamfo, Daniel Akoto and Kpakpa, Clement Tetteh and Panful, Benjamin and Oware, Derrick (2025) Evaluating the role of cybersecurity audits in protecting the US capital market. World Journal of Advanced Research and Reviews, 25 (2). pp. 974-980. ISSN 2581-9615

More recently, the United States capital market has experienced a rise in cyber threats which pose an alarming threat to capital market stability and investors’ confidence. This research explores how cybersecurity audits address these challenges. It highlights how audit committees have gradually started to consider cybersecurity as an important issue due to emerging threats. The Securities and Exchange Commission (SEC) has responded by adopting strict guidelines that insist that firms disclose their cybersecurity risk management policies and cyber incidents which emphasize the importance of accountability and transparency in the financial market (PWC, 2023). In addition, internal audit functions remain more critical today in evaluating the adequacy of cybersecurity risk controls, identifying vulnerability, and safeguarding sensitive information. Findings indicate that investors now consider cybersecurity disclosures while investing. Firms with no prior cyber incidents tend to gain from voluntary assurances, but companies with a history of cyber incidents face intense scrutiny about the competence of their management. Hence, this article emphasizes the critical contribution of cybersecurity audits in the protection of the US capital market by advocating for comprehensive risk evaluations, compliance with regulatory requirements, and proactive internal audit activities, thereby reinforcing the necessity of continuous improvement in cybersecurity protocols to maintain investor confidence and trust.