Cases in Cybersecurity 2

Why is this important?

As cyber threats continue to evolve, auditors must be prepared to address cybersecurity risks that impact financial statement integrity and organizational trust. Password management is a critical component of cybersecurity and ITGCs, protecting organizations from unauthorized access, data breaches, and fraud. This case introduces students to the audit implications of cybersecurity controls, equipping them with practical skills in identifying weaknesses and ensuring effective cybersecurity policies. Through the lens of Liberty Data Systems, students will build competencies in data analytics, compliance assessment, and cyber risk evaluation—key skills for modern auditors navigating increasingly digital environments. This experience highlights the auditor’s role in promoting organizational resilience against cyber risks, strengthening students’ capacity to evaluate and support secure financial reporting.

What will we do?

In this cybersecurity-focused case, students take on the role of a hacked company. Students will attempt to escape the digital dungeon in time to complete their work. This light-hearted case explores the impacts of cyber risk and cybersecurity events—such as data breaches, malware, and social engineering. Through hands-on exercises with tools like Alteryx or Python, students will identify vulnerabilities in systems.

How this relates to other classes:

This is the second in a two class sequence on cybersecurity. In this module, we transition into the critical and rapidly evolving area of cybersecurity, beginning with password management as a component of IT general controls. By assessing cybersecurity risks at Liberty Data Systems, students apply audit skills to identify vulnerabilities in password protocols, explore the financial implications of cyber risks, and understand the impact of compromised controls on audit risk. This class is part of a broader exploration of the auditor’s role in cybersecurity, moving beyond foundational controls to address emerging cyber threats, regulatory requirements, and data protection standards. As we progress, future classes will introduce additional cybersecurity topics, each designed to enhance students’ ability to safeguard data integrity and support compliance in the digital age. This series ultimately prepares students to address the unique challenges posed by today’s cybersecurity landscape, developing a forward-thinking approach to audit practices that align with the growing demands of cybersecurity and data protection in modern financial environments.