Abstract
This study investigates the perceptions of auditors regarding the important items in the disclosure of content and presentation dimension that can be used to describe the level of internet financial reporting (IFR). Questionnaires were distributed to 100 auditors. A total of 40 questionnaires were completed and returned, giving a response rate of 40 percent. From the survey, it was found that the five most important items in the content dimension are income statement of current year, income statement of past years, cash flow statement of current year, notes to financial statements of current year and balance sheet of current year. Meanwhile, in the presentation dimension, five most items important to disclosure are loading time of the website below 10 seconds, annual report in PDF format, hyperlinks inside the annual report, ability to download reports and hyperlinks to financial analysts. Finally, the limitation of this study and future research will also be discussed.
Highlights
Nowadays, most companies use the internet as a tool to deliver information regarding their company’s financial reporting by using the World Wide Web (WWW) as a medium to display the company’s financial data, annual reports, databases on press release and other related information for financial disclosure about the company activity (Delleret al., 1999)
As a conclusion, based on the auditors’ views and feedback, a number of 90 out of 97 items were identified as the basis for internet financial reporting (IFR) index measurement for content dimension
52 out of 58 items were identified as the basis for IFR index measurement for presentation dimension
Summary
Most companies use the internet as a tool to deliver information regarding their company’s financial reporting by using the World Wide Web (WWW) as a medium to display the company’s financial data, annual reports, databases on press release and other related information for financial disclosure about the company activity (Delleret al., 1999). When a company is willing to exchange business information and build business globally on the internet, it becomes part of the company network by adopting internet financial reporting (hereinafter referred to as IFR) (Lymer & Debreceny, 2003; Hansen, 2001). The recent development in the area of information and communication technology (ICT) has profoundly altered the way corporate information disseminated among stakeholders (Samahaet al., 2012). Companies use websites to deliver information to stakeholders of financial reporting (Velmurugan, 2009; Fisher et al, 2004). Many countries have developed securities markets, such as Bursa Malaysia, which uses information technology (IT) for corporate reporting and is very well established (Lymer & Debreceny, 2003). Less researchers study the importance of IFR practices and the effectiveness in disclosing financial reporting (Ismail & Sobhy, 2009; Mirshekary & Saudagaran, 2005)
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