The Impact of Cybersecurity Risks on Auditor Fees for Financial Statement Audits - an Experimental Study

Document Type : Original Article

Authors

1 Master's researcher at the Faculty of Business - Alexandria University

2 Professor of Accounting and Auditing - Faculty of Business - Alexandria University

3 Lecturer of Accounting and Auditing - Faculty of Commerce - Alexandria University

Abstract

     The research aimed to examine the impact of cybersecurity risks on auditor fees for auditing financial statements, taking into account the moderating variables of auditors' academic qualifications and professional experience. The study focused on conducting an Experimental Study on a sample of auditors in audit firms registered with the Financial Regulatory Authority (FRA), which supervises companies listed on the Egyptian Stock Exchange. Using an Experimental approach, the study analyzed data collected from registered audit firms to investigate the relationship between cybersecurity risks and financial statement audit fees.
     The study found a positive impact of cybersecurity risks on auditor fees for auditing annual financial statements, indicating that higher risks lead to higher audit costs. Furthermore, the study confirms that auditors' qualifications and experience strengthen this relationship, as more knowledgeable and experienced auditors tend to assess cybersecurity risks more effectively, which influences their audit fee decisions. Limitations of the study include its focus on audit firms operating within the Egyptian regulatory environment, which may limit the generalizability of the findings to other contexts.

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