Audit committee effectiveness, internal audit function, firm-specific attributes and internet financial reporting: a managerial perception-based evidence
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Financial Reporting and Accounting
Abstract
This study aims to examine the contribution of audit committee effectiveness (ACE), internal
audit function (IAF) and firm-specific attributes to internet financial reporting (IFR). It also seeks to
understand which ACE and IAF attributes contribute to variances in IFR.
Design/methodology/approach – Data are collected through a questionnaire survey of 40 financial
services firms.
Findings – The analysis shows that ACE and IAF significantly contribute to positive variances in IFR. It
also shows that among the firm-specific attributes, only capital structure significantly contributes to positive
variances in IFR. Audit committee meetings and authority contribute significantly to positive variances in
IFR unlike audit committee expertise and independence. In terms of the IAF attributes, the risk management
role and the regulatory compliance role contribute significantly to positive variances in IFR as compared to
the governance processes role and evaluation of the internal control role.
Originality/value – This study enhances our understanding of the relationship between ACE, IAF, firmspecific
attributes and IFR in an environment where IFR is not mandated and where corporate governance
practices are very much in infancy. This is especially so given that for the first time, to the best of the authors’
knowledge, the contribution made by ACE, IAF and firm-specific attributes in IFR using evidence from an
African developing country (Uganda) is now documented in a single study.
Description
Keywords
Internet financial reporting, Audit committee effectiveness, Internal audit function, Diffusion of innovation theory, Firm-specific attributes
Citation
Bananuka, J., & Nkundabanyanga, SK (2022). Audit committee effectiveness, internal audit function, firm-specific attributes and internet financial reporting: a managerial perception-based evidence. Journal of Financial Reporting and Accounting . DOI 10.1108/JFRA-07-2021-0198