Cyber Security Threats Associated with the IT System of Glaglo LTD

1. Loss/Theft of Data

   • The company may face data breaches where sensitive customer or financial data is stolen by cybercriminals.

2. Loss of Intellectual Property

   • Hackers or competitors may gain unauthorized access to proprietary business data, trade secrets, or critical customer information.

3. Theft of Funds

   • Cyber attackers could exploit vulnerabilities in the online payment system to siphon funds, leading to financial losses for the company.

4. Leakage of Sensitive Information

   • Unauthorized access to confidential customer or corporate data can lead to regulatory penalties and reputational damage.

5. Disruption of Day-to-Day Business

   • Cyber-attacks such as ransomware could halt operations, leading to downtime, loss of revenue, and customer dissatisfaction.

6. Prevention of Timely Access to Information

   • Distributed Denial-of-Service (DDoS) attacks could make the company’s systems unavailable to customers and employees.

ii) Audit Response to Cyber Security Threats

• Testing Automated Controls

  • The auditor should assess automated interface controls, access controls, and configuration settings in IT systems to ensure secure transaction processing.

• General IT Control Evaluation

  • The audit team must review general IT controls such as system firewalls, encryption methods, and user authentication protocols to prevent unauthorized access.

• Access and Authorization Testing

  • Ensuring that only authorized users can access critical financial systems and customer information.

• Transaction Monitoring and Fraud Detection

  • The auditor should examine whether the fintech company has robust fraud detection mechanisms in place.

• Testing Backup and Recovery Plans

  • The audit team should review the company’s data backup policies and recovery processes to ensure business continuity in the event of a cyber-attack.

• Reviewing Third-Party Risk Management

  • Since Glaglo LTD relies on a fintech company for payments, auditors should assess the security policies of the third party to prevent cyber vulnerabilities.

• Compliance with Regulatory Standards

  • The auditor must ensure that the company complies with cybersecurity laws, industry regulations, and data protection standards.