Determinants of auditors' perceptions of the work needed in the audit of internetbased financial reports in Egypt

• Published in: Journal of applied accounting research 2009-09, Vol.10 (2), p.132-150
• Main Authors: Ismail, Tariq H., Sobhy, Nermeen M.
• Format: Article
• Language: English
• Subjects: Auditors; Egypt; Financial reporting; Internet; Perception; Personality
• ISSN: 0967-5426
• DOI: 10.1108/09675420910984691

Purpose The purpose of this paper is to constitute and test a framework of factors that might affect auditors' perceptions of the work needed to audit internetbased financial reports IBFR. Designmethodologyapproach The paper conducts a questionnaire on practicing auditors from audit firms in Egypt in the year 2007 to examine their perceptions of the work needed to audit IBFR and factors that might affect their perceptions. Findings The paper portrays total auditors' perceptions as a function of four dimensions. First, auditor personalspecific characteristics consisting of three variables second, audit fieldworkspecific characteristics containing one variable third, audit firmspecific characteristics comprising five variables and fourth, environmentalspecific characteristics consisting of four variables. The analysis of empirical study provides evidence of a significant association between auditors' perceptions of the work needed to audit IBFR and the following factors auditors' knowledge of inherent risks of internet reporting, quality systems, audit tenure, legal form of client, client industry group, user needs of financial information, and legislation environment. Research limitationsimplications The scope of the survey is limited to a small number of potential participants. Accounting and auditing standards setting environment in Egypt may restrict the generalization of the findings of this paper. Originalityvalue This paper enriches the literature on internet reporting and audit tasks by exploring factors that might affect auditors' perceptions of the work needed to audit IBFR. The paper provides evidence that supports Egyptian regulators' initiatives to issue guidelines that cover IBFR, and auditors' responsibilities and the work needed in the audit of IBFR in electronic business environments in an attempt to improve the integrity of financial reporting.