The Impact of Cyber Risks on Audit Fees: The Moderating Role NIST CSF

Abstract

This study aimed to analyze the impact of cyber risks on audit fees and to identify the moderating role of the NIST Cybersecurity Framework (NIST CSF) in this relationship. To achieve its objectives, the study adopted a descriptive-analytical approach. The study population consisted of practicing certified public accountants in Jordan, totaling 688 auditors. Primary data were collected through a questionnaire specifically designed for this purpose, and 280 electronic questionnaires were distributed to the sample members. After data collection, 240 valid questionnaires were retrieved for analysis, while 40 were excluded either due to non-response or invalid data.

The findings revealed that the NIST CSF plays a statistically significant moderating role in the relationship between cyber risks and audit fees. The sub-hypotheses confirmed a significant effect of the framework in mitigating the relationship between cyber risks and certain dimensions of audit fees. Specifically, the framework work was found to reduce the impact of cyber risks on audit efforts, task complexity, audit scope and overall audit-related risks. However, regarding the effect of the framework on the relationship between cyber risks and the use of specialized experts, the results showed no significant effect. In the light of these findings, the study recommended encouraging organizations to adopt and implement the NIST CSF as part of their governance and risk management processes, given its effective role in enhancing responsiveness to cybersecurity threats and reducing their implications for audit tasks.