Ensuring Information Security In Accounting and Auditing: Risks In Digital Systems and Their Management

Abstract

The digitalization of accounting and auditing in Uzbekistan has brought significant operational efficiencies but simultaneously introduced new vulnerabilities to cyber threats and data breaches. With 70% of enterprises adopting cloud-based accounting systems by 2023, cybersecurity risks have become a critical concern, leading to financial losses and threatening data integrity in financial reporting. While some studies acknowledge cybersecurity challenges, few have empirically assessed the combined impact of technological risks and mitigation strategies in Uzbekistan’s financial sector. This study examines the risks associated with digital accounting and auditing systems in Uzbekistan, evaluates the effectiveness of current cybersecurity measures, and proposes strategies aligned with international best practices. The findings indicate that robust cybersecurity measures, such as encryption, intrusion detection, and access controls, have improved data integrity by 20%, saving significant economic costs. Nevertheless, challenges persist, including outdated infrastructure, skill shortages, low cybersecurity awareness, and budget constraints, risking up to 100 billion UZS annually. Utilizing a mixed-methods approach that combines qualitative policy analysis with quantitative incident data from 2020–2024, this study uniquely bridges practical vulnerabilities with tailored policy recommendations for Uzbekistan’s financial sector. Recommendations emphasize upgrading digital infrastructure, extensive auditor training, awareness campaigns, and establishing public-private partnerships for cybersecurity funding, thereby strengthening the resilience and integrity of Uzbekistan’s accounting and auditing sectors..