Author

  • Mohd Noor Azli bin Ali Khan

    • Universiti Teknologi Malaysia, Malaysia
    • Malaysia

  • Nurul Ain binti Omar

    • Universiti Teknologi Malaysia, Malaysia
    • Malaysia

Abstract

The objective of this research is to analyse the important items in the disclosure of benefit IFR to company and users, factors companies to engage or not engage IFR and some audit issues that can be used to describe the level of IFR from auditor’s perception. Questionnaires were distributed to 100 auditors. A total of 40 questionnaires were completed and returned, giving a response rate of 40 percent. Based on the literature review of the IFR from the survey towards auditors indicate three items of benefit IFR to user are helps users in the decision-making process, provides accessibility to the users, increase timeliness and efficiency in obtaining financial information. Meanwhile, three items on benefit IFR towards company are attract foreign investors, attract local investors, and promote company wider to the public. On the other hand, three factor influence companies to engage IFR because enhancement of corporate image, stability and improvement in share prices and competitors in the industry. Whilst, three-factor Company not to engage IFR because requires expertise from the company, concerned over disclosure of propriety information and concerned over security information. Finally, the findings of this study also cover audit issues, for example the conversion or transposition processes involved in publishing information on the internet is susceptible to error, information on the internet is exposed to access and modification by unauthorised users both external and internal to the reporting entity and that information on the internet has the potential to be very fluid. Lastly, the limitation of this study was also highlighted and there are suggestions for future research.

Keywords

References

  • Abdul-Rahman, A. (2001). The Use and Perceived Importance of Annual Reports by Accountants in the Service Industry in Malaysia. Asian Review of Accounting, 9(2), 117-126.
  • Alattar, J. L. & Al-Khater, K. (2007). An Empirical Investigation of Users’ Views on Corporate Annual Report in Qatar. International Journal of Commerce and Management, 11(4), 312-325.
  • Al-Htaybat, K. (2011). Corporate Online Reporting in 2010: A Case Study in Jordan. Journal of Financing Reporting and Accounting, 9(1), 5-26.
  • Ali Khan, M. N. A. (2010). Pelaporan Kewangan Menerusi Internet Indeks, Tahap Pelaporandan Faktor Penentunya. Unpublished PhD Dissertation: Universiti Utara Malaysia, Sintok Kedah.
  • Ali Khan, M. N. A. & Ismail, N. A. (2009).Internet Financial Reporting in Malaysia, Factors, Pros and Cons. Accountants Today, 22(2), 28-31.
  • Ali Khan, M. N. A. & Ismail, N. A. (2011).The level of Internet Financial Reporting of Malaysian Companies. Asian Journal of Accounting and Governance, 2, 27-39.
  • Ali Khan, M. N. A. & Ismail, N. A. (2012). Various Aspects of Internet Financial Reporting: Evidence from Malaysian Academician. Journal of Global Business and Economics, 4(1), 1-15.
  • Allam, A. & Lymer, P. (2003). Development in Internet Financial Reporting: Review and Analysis across Five Developed Countries. The International Journal of Digital Accounting Research, 3(6), 165-199.
  • Ashbaugh, H., Johnstone, K. M. & Warfirld, T. D. (1999). Corporate Reporting on the Internet. Accounting Horizons, 13(3), 241-257.
  • Barlett, J. E., Kotrlik, J. W. & Higgins, C. C. (2001). Organizational Research: Determining Appropriate Sample Size in Survey Research. Information Technology, Learning, and Performance Journal, 9(1), 43-50.
  • Celik, O., Ecer, A. & Karabacak, H. (2006).Impact of Firm Specific Characteristics on the Web Based Business Reporting: Evidence from the Companies Listed in Turkey. Problems and Perspectives in Management, 4(3), 100-133.
  • Coakes, S. J. & Ong, C. (2011). SPSS version 18.0 for windows (version 18.0). Australia: John Wiley and Sons.
  • Creswell, J. W. (2005). Educational Research: Planning, Conducting, and Evaluating Quantitative and Qualitative Research. (2nd Ed.). New Jersey: Pearson Prentice Hall.
  • Creswell, J. W. (2009). Research Design: Quantitative, Quantitative, and Mixed Methods Approaches. (3rd ed.). United Kingdom: SAGE Publications.
  • Davies, M. B. (2007). Doing a Successful Research Project. (3rd Ed.). New York: Palgrave Macmillan.
  • Debreceny, R., Gray, G. L. & Rahman, A. (2002).The Determinants of Internet Financial Reporting. Journal of Accounting and Public Policy, 21(4-5), 371-394.
  • Deller, D., Stubenrath, M. & Weber, C. (1999).A Survey on the Use of the Internet for Investor Relations in the USA, the UK and Germany. The European Accounting Review, 8(2), 351-364.
  • Feher, A. & Towell, E. (1997).Business use of the Internet. Internet Research, 7, 195-200.
  • Field, A. P. (2005). Discovering Statistics Using SPSS. (2nd Ed.). London: Sage.
  • Fisher, R., Oyelere, P. & Laswad, F. (2004). Corporate Reporting on the Internet: Audit Issues and Content Analysis of Practices. Managerial Auditing Journal, 19(3), 412-439.
  • Frazer, L. & Lawley, M. (2000).Questionnaire Design & Administration. Australia: John Wiley & Sons.
  • Griffiths, P. (2012). Information Audit: Towards Common Standards and Methodology. Business Information Review, 29(1), 39-51.
  • Hansen, J. V. (2001). Internet Commerce Security: Issues and Model for Control Checking. Journal of the Operational Research Society , 52(10), 1159-1164.
  • Harry, N. B. & Deborah, A. B. (2012).Analyzing Likert Data. Journal of Extension, 5(2), 1-5.
  • Hay, L. E. & Antonio, J. F. (1990). What Users Want in Government Financial Reports. Journal of Accountancy. August, 91-98.
  • Heller, T. & Greene, S. (2012). Using SPSS for Data Analysis: Support Document for SPSS Output Tables. UWStout Office of Planning, Assessment, Research and Quality (PARQ), 2-51.
  • Ho, S. S. M. & Kar, S. W. (2001). A study of Corporate Disclosure Practice and Effectiveness in Hong Kong. Journal of International Financial Management and Accounting, 12(1), 75-100.
  • Ismail, T. H. & Sobhy, N. M. (2009). Determinants of Auditors’ Perception of the Work Needed in the Audit of Internet- Based Financial Report in Egypt. Journal of Applied Accounting Research, 10(2), 132-150.
  • Joshi, P. L. & Al-Modhahki, J. (2003). Financial Reporting on the Internet: Empirical Evidence from Bahrain and Kuwait. Asia- Pacific Journal of Accounting, 11(1), 88-101.
  • Kaye, D. (1995). The Importance of Information. Library Management, 16(5), 6-15.
  • Khadaroo, I. (2005). Corporate Reporting on the Internet: Some Implication for the Auditing Profession. Managerial Auditing Journal, 20(6), 578-591.
  • Krejcie, R. V. & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30, 607-610.
  • Ku Ismail, K. N. I. & Chandler, R. (2005). Perceptions of Professional Investors in Malaysia on the Usefulness of Quarterly Financial Reports. Journal of Management, 24, 105-124.
  • Kumar, R. (2011). Research Methodology. (3rd ed.). London: SAGE Publications.
  • Lymer, A. & Debreceny, R. (2003). The Auditor and Corporate Reporting on the Internet: Challenges and Institutional Responses. International Journal of Auditing, 7, 103-120.
  • Marshall, C. & Rossman, G. B. (1999). Designing Qualitative Research. London. Stage Publication.
  • Mirshekary, S. & Saudagaran, S. M. (2005). Perceptions and characteristics of financial statement users in developing countries: Evidence from Iran. Journal of International Accounting, Auditing and Taxation, 14, 33-54.
  • Mohd Isa, R. (2006). Graphical Information in Corporate Annual Report: A Survey of Users and Preparers Perception. Journal of Financial Reporting and Accounting, 4(1), 39-60.
  • MohdSanusi, Z., Ismail, A. H., Mat Isa, Y., Tapsir, R., Kasim, S., Muhamad, K., Chantrathevi, T., Zaini, N., Mohd Arif, S. M., Mastuki, N. A. & Omar, N. (2008). Audit Quality Control: Development of Self- Assessment Checklist for Small and Medium Audit Practices in Malaysia. International Accounting and Business Conference, 18-19 August. Universiti Teknology Mara: Johor, 1-8.
  • Moradi, M., Salehi, M. and Arianpoor, A. (2011).A Study of the Reasons for shortcomings in establishment of Internet Financial Reporting in Iran. African Journal of Business Management, 5(8), 3312-3321.
  • Naser, K., Nuseibeh, R. and Al-Hussaini, A. (2003).Users’ Perceptions of Various Aspects of Kuwaiti Corporate Reporting. Managerial Auditing Journal, 18(6/7), 599-617.
  • Ohman, P. and Wallerstedt, E. (2012). Audit Regulation and the Development of the Auditing Profession: The Case of Sweden. Accounting History . 17(2), 241-257.
  • Ousama, A. A., Fatima, A. H. and Majdi, A. R. H. (2011). Usefulness of Intellectual Capital Information: Preparers’ and Users’ Views. Journal of Intellectual Capital, 12(3), 430-445.
  • Oyelere, P., Laswad, F. and Fisher, R. (2003), Determinants of Internet Financial Reporting by New Zealand Companies. Journal of International Financial Management and Accounting. 14(1), 1-39.
  • Radhakrishna, R.B. (2007). Tips for Developing and Testing Questionnaire or Instrument. Journal of Extension . 45(1), 1-4.
  • Rahman, M.Z. (1998). The Role of Accounting Disclosure in the East Asian Financial Crisis: Lesson Learned. United Nation Conference on Trade and Development. December 1998. Switzerland, 1-38.
  • Staden, C. J. V. (1998). The Usefulness of the Value- Added Statement in South Africa. Managerial Finance, 24(11), 44-59.
  • Stoel, D., Havelka, D. & Merhout, J. W. (2012). An Analysis of Attributes that Impact Information Technology Audit Quality: A Study of IT and Financial Audit Practitioners. International Journal of Accounting Information System, 13, 60-79.
  • Sumiani, Y., Haslinda, Y. & Lehman, G. (2007). Environmental Reporting in a Developing Country: A Case on Status and Implementation in Malaysia. Journal of Cleaner Production, 15, 895-901.
  • Tan, L. L., Lazar, J. & Othman, R. (2007). Adoption of Financial Reporting Standards (FRSs): Impact on Malaysian Companies. Malaysian Accountancy Research and Education Foundation, 1-60.
  • Velmurugan, M. S. (2009). Security and Trust in E-Business: Problem and Prospects. International Journal of Electronic Business Management, 7(3), 151-158.
  • Virginia, M. C. & Michael, J. C. (2003).Impact of SAS no.94 on computer audit techniques. Information System Control Journal, 2, 1-9.
  • Weis, A. H. (2010). Commercialization of the Internet. Internet Research , 20(4), 420-435.
  • Xiao, J. Z., Jones, M. J. & Lymer, A. (2002). Immediate Trends in Internet reporting. European Accounting Review, 11(2), 245-276.
  • Xiao, J. Z., Jones, M. J. & Lymer, A. (2005).A Conceptual Framework for Investigating the Impact of the Internet on Corporate Reporting. The International Journal of Digital Accounting Research, 5(10), 131-169.

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Ali Khan, M. N. A. bin, & Omar, N. A. binti. (2013). A Study of Various Aspects of Internet Financial Reporting: A Case of Malaysian Auditors. Information Management and Business Review, 5(6), 278-291. https://doi.org/10.22610/imbr.v5i6.1053

Share this article

License

Copyright (c) 2013 Mohd Noor Azli bin Ali Khan, Nurul Ain binti Omar (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.

Keywords

Section

Research Paper

Published in

Vol. 5 No. 6 (2013) Electronic Design, Econometrics & Technology Adoption View issue contents

Published

2013-06-30

Submissions

Have research to publish? Information Management and Business Review welcomes submissions.

Make a Submission