Final answer:
Increased incidents of cyber attacks can lead to financial loss and reputational damage for accounting firms. It is important for firms to invest in cybersecurity measures to prevent cyber attacks and protect client confidentiality.
Step-by-step explanation:
Increased incidents of cyber attacks can have a significant impact on accounting firms. One major effect is the risk of financial loss and reputational damage. If a firm's financial data or their clients' information is compromised, it can lead to financial fraud or legal consequences.
Accounting firms also have a responsibility to protect client confidentiality, and a cyber attack can breach that trust. This can result in the loss of clients and damage to the firm's reputation.
In response to the growing threat of cyber attacks, accounting firms need to invest in robust cybersecurity measures such as firewalls, encryption, and employee training. They should also regularly update their software and systems to ensure they are protected against the latest threats.