THE IMPACT OF CYBERSECURITY RISK DISCLOSURE ON PLANNING EXTERNAL AUDIT PROCEDURES

Abstract

This study aimed to examine the impact of cybersecurity risk disclosure on enhancing external audit planning in commercial banks. It focused on the role of cybersecurity risk disclosure in improving audit planning quality, assessing audit risks, understanding the bank's operating and digital environment, identifying areas of significant risk, evaluating the effectiveness of internal control systems, and designing appropriate audit procedures. The study adopted a descriptive-analytical approach for the theoretical framework and a content analysis approach for the practical aspect by analyzing the annual reports of Bank of Baghdad and evaluating the level of cybersecurity risk disclosure and its impact on external audit planning, based on International Standards on Auditing and relevant academic literature.The findings Indicated that cybersecurity risk disclosure enhances the external auditor's understanding of the bank's digital environment, improves audit risk assessment, facilitates the identification of significant risk areas, strengthens the evaluation of internal control systems, and contributes to designing more effective audit procedures. The study also concluded that improving cybersecurity risk disclosure in line with international best practices enhances the transparency of financial reports and increases stakeholders' confidence in financial information.