What is the auditor's responsibility if a security breach occurs?

The auditor's responsibility when a security breach occurs includes inquiring about management controls for reporting breaches. This involves assessing the effectiveness of the controls that the organization has in place to detect, respond to, and report security incidents. By understanding these controls, auditors can evaluate whether the organization is managing its cybersecurity risks properly and complying with relevant laws and regulations.

This inquiry is crucial because it helps the auditor form an opinion on the adequacy of the organization's internal controls related to cybersecurity. It allows the auditor to determine if management is aware of potential vulnerabilities and has established procedures for responding to and reporting breaches. Such inquiries also help ensure that any identified weaknesses in the organization's cybersecurity posture are addressed.

While immediate disclosure may seem important, it must be handled carefully to comply with legal and regulatory requirements, so this response is not entirely appropriate. Ignoring a breach is obviously not in line with best practices, and consulting with stakeholders can be part of the response process but is not the primary responsibility of the auditor when it comes to assessing management controls.