CYBERSECURITY RISKS IN FINANCIAL APPLICATIONS: IMPLICATIONS FOR INTERNAL CONTROL AND ASSURANCE
DOI:
https://doi.org/10.55171/jsab.v14i1.1571Abstract
This study aims to analyze the impact of cybersecurity risks on the effectiveness of internal control and assurance functions in financial applications. Using a quantitative approach, data were collected from 87 respondents who are active users of financial applications through a structured questionnaire. Regression analysis was employed to examine the relationship between the independent variable (cybersecurity risks) and the dependent variables (internal control and assurance). Hypothesis testing results indicate that cybersecurity risks have a significant positive effect on the effectiveness of internal control and assurance (t = 7.84, p < 0.001). The coefficient of determination (R² = 0.62) shows that 62% of the variation in internal control and assurance effectiveness can be explained by cybersecurity risks. These findings highlight the necessity for organizations to strengthen risk mitigation strategies and integrate IT controls into financial systems to ensure reliability and resilience.References
Alqahtani, F., & Alshammari, H. (2024). Cybersecurity risk management in fintech: Implications for internal control. Journal of Information Security and Applications, 75, 103–118.
Brown, T., & Davis, K. (2021). Cybersecurity risks and internal control effectiveness: Evidence from financial institutions. Journal of Accounting and Public Policy, 40(5), 100–115.
Emmanuel, A. A. (2025). The impact of cybersecurity on financial reporting: Strengthening data integrity and regulatory compliance. International Journal of Science and Research Archive, 14(2), 626–637. https://doi.org/10.30574/ijsra.2025.14.2.0427 (doi.org in Bing)
Nguyen, T., & Pham, H. (2021). Digital transformation and cybersecurity assurance in financial reporting. Asian Journal of Accounting Research, 6(2), 145–160.
Johnson, M., & Lee, D. (2022). Cyber risk disclosure and its impact on investor confidence. Journal of Financial Crime, 29(2), 350–367.
Kumar, S., & Patel, R. (2023). Cybersecurity governance and financial reporting reliability. Journal of
Kelton, A. S., & Yang, Y. (2025). The role of internal controls in reducing cybersecurity contagion effects. Current Issues in Auditing, 19(2), 30–38. https://doi.org/10.2308/CIIA-2024-036 (doi.org in Bing)
Park, J., & Kim, H. (2022). Cybersecurity assurance frameworks in financial services. Information Systems Management, 39(1), 12–25.
Swanson, D. (2018). Security, audit, and leadership: A field guide to integrated assurance. Routledge.
Stallings, W., & Brown, L. (2017). Computer security: Principles and practice (3rd ed.). Pearson.
Silva, R., & Mendes, P. (2024). Internal audit strategies for assessing cybersecurity controls in financial institutions. Journal of Financial Regulation and Compliance, 32(1), 45–62.
Tipton, H. F., & Krause, M. (2016). Information security management handbook (7th ed.). CRC Press.
Zhang, L., & Chen, Y. (2023). Cyber threats and assurance in digital banking: A regression-based
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Rizkiawan, Siti Aisyah, Juwita Aprilia, Nuuridha Matiin
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
