Compliance glossary
Definition

Security Awareness Training

Regular training for all employees on recognizing phishing, handling client data safely, and following the firm's security policies.

What it means.

Security awareness training is recurring training delivered to all firm personnel (including seasonal preparers) on common threats and the firm's policies. The FTC Safeguards Rule requires it under 16 CFR 314.4(e), and IRS Publication 4557 reinforces it. Training typically covers phishing recognition, password and MFA practices, safe handling of client data, secure transmission, physical security, and incident reporting procedures. Every session should be logged with date, attendees, topics, and signed acknowledgments.

Why it matters for CPA firms.

Training without documentation is training that did not happen as far as the FTC is concerned. The most common compliance gap in this area is informal verbal training that leaves no paper trail. New hires are 71 percent more likely to fall for phishing in their first 90 days, so training must happen before, not after, they get system access. Seasonal staff must be trained too.

Relevant regulations.

  • 16 CFR 314.4(e)
  • IRS Publication 4557

How Kompflow helps.

The Compliance Academy Training module handles this for your firm, personalized to your software, team size, and state requirements.

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