ICAEW SE · Chapter 8 · Question 8 of 18
An audit senior leaves an unencrypted laptop containing client payroll files on a train. Which of the following is the most significant risk arising from this accidental disclosure?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Personal data could be misused, causing harm to individuals and exposing the firm to regulatory sanctions, legal claims and reputational damage
Explanation
Accidental disclosure of confidential and personal data can harm the individuals concerned, for example through identity theft, and can lead to regulatory penalties under data protection law, legal claims and loss of client trust. The fact that the disclosure was unintentional does not remove these risks. Firms reduce such risks through encryption and data security policies.
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