The International journal of digital accounting research -- V. 08, (2008)

Permanent URI for this collectionhttps://hdl.handle.net/10272/2075

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Now showing 1 - 5 of 5

Reengineering business reporting creating a test bed for technology driven reporting
(Universidad de Huelva, 2008) Vasarhelyi, Miklos A.; Alles, Michael G.
Building on the work originally done for the Enhanced Business Reporting consortium of the AICPA, this paper develops a test bed for innovation in business reporting. As with flying test beds in aviation, the object is to explore the impact of new technologies and techniques rather than to create a product intended for immediate implementation. The starting point of our analysis is that if the financial reporting system was being built from scratch today, it would look very different, taking into account fundamental changes in the two drivers of financial reporting: First, the dominance of market making by professional investors, which includes such intermediaries as pension and mutual funds, which is how most ordinary individuals interact with the market; Second, the reduction in the variable costs of disclosures to technology-enabled firms, while time taking a broader view of the cost of reporting to include the opportunity cost to the firm from faulty disclosures and the cost to professional investors of having to extract the data they need from statements that were not designed for their needs. Taken together, the consequence of these two changes is that a system being designed today has to rethink the entire process by which financial data held by the firm is translated into decision relevant information by users. This process takes place both within the firm and outside of it, with a handover of financial statements taking place at the boundary between the firm and its users. Given these changes it is time to ask whether the location of that handover boundary point is still appropriate: whether the firm should continue to aggregate and condense information extensively before releasing it, or whether sophisticated users would prefer to have access to more information in closer to its raw format so that they can manipulate and aggregate it as they see fit. Based on this conceptual model we discuss the building blocks of a 21st century reporting system and the technical architecture needed to implement it. It is our hope that this paper will help create an open source test bed that will develop new ways to measure, manage and communicate firm performance in the 21st century.
An investigation into the application of continuous online auditing in the U.K
(Universidad de Huelva, 2008) Omoteso, Kamil; Patel, Ashok; Scott, Peter
As online technology continues to have a significant influence on business activities and due to the vital role auditing plays in the financial reporting systems, auditors are gradually adopting online technology in carrying out their tasks. While a number of studies have focused on the phenomenon, none of the few that have emanated from the UK is empirical in nature. This paper reports on an empirical investigation into the possible benefits and drawbacks of Continuous Online Auditing (COA) with a view to assessing its relevance to the future of both internal and external auditing. The findings indicate that the readiness of audit professionals and their clients to adopt COA is still a contentious issue. The paper concludes with some reflections on what the expansion of COA might mean.
An empirical examination of competing theories to explain continuous disclosure technology adoption intentions using XBRL as the example technology
(Universidad de Huelva, 2008) Pinsker, Robert E.
The purpose of this paper is to test competing theories from Pinsker’s (2007) new research framework in order to provide a better understanding of XBRL (as the continuous disclosure technology example) adoption intentions of managers who have low knowledge of XBRL, but work for firms who may adopt. A survey methodology was used with experienced business professionals and MBA students. Two of three research propositions were empirically supported. The results indicate that both the technology acceptance model (TAM) and absorptive capacity represent appropriate theories for studying XBRL adoption. However, future related TAM research should be conducted either with a modified ‘attitude’ variable or through eliminating this variable altogether. Results provide an empirical validation of part of Pinsker’s (2007) framework. The findings add to the existing practical and academic literature regarding perceived benefits of XBRL adoption for firms. The difference in significance between TAM variables represents a unique finding in the TAM literature, which suggests XBRL adoption has significantly different aspects than previous information technology adoption research in general. Future research opportunities are explored.
A comparison of the information technology knowledge of United States and German auditors
(Universidad de Huelva, 2008) Greenstein-Prosch, Marilyn; McKee, Thomas E.; Quick, Reiner
The International Federation of Accountants has stated that competence in information technology is imperative for the professional accountant due to its pervasive use in the business world. Auditors would normally be expected to have higher knowledge than the average accountant since they must audit the work of many different clients with diverse information systems. We surveyed 2,500 United States and German auditing professionals to determine their self-reported knowledge levels (IT self-efficacy) of 36 information technologies, some of which include various emerging technologies. Responses totaled 587 for a 23.5% overall response rate. A factor analysis of the 36 individual technologies revealed five underlying general constructs. Response statistics indicated both countries lacked significant knowledge for three of these five constructs. Scores were then culturally standardized to appropriately compare United States and German responses. German auditors had significantly higher knowledge for the construct of networking and data transfer. U.S. auditors had significantly higher knowledge for three constructs: ecommerce technologies, general office automation, and audit automation technologies. No differences were found for the construct of accounting firm office automation technologies. This study provides a foundation and methodology by which future researchers can measure whether, as an “emerging technology” matures, greater convergence will occur over time across cultures in factor analysis, as in the case of the more mature construct, general office automations.
Accounting for collaborative supply chain relationships : issues and strategies
(Universidad de Huelva, 2008) Sutton, Steve G.; Smedley, Georgia; Arnorld, Vicky
The purpose of this discussion paper is to explore the contemporary business model that has arisen with the advent of B2B e-commerce systems in order to better understand the improvements needed in the financial reporting model. The contemporary business model has relegated the enterprise-centric view of corporate competition and the current financial reporting model to insignificance in many instances. Rather, today’s business environment is one dominated by competition between supply chains with an organization’s success ultimately hinging on the viability and success of its supply chain partners as much as, or more than, enterprise-centric policies and decisions. As a result, these highly integrative systems connect supply chain partners in a manner that is more tightly coupled than most consolidated entities. Still, the current financial reporting model fails to even minimally capture the complexity of this new reality. This discussion paper provides the foundation for elaborating on a detailed discussion of how this business model could be more accurately captured through an enhanced business reporting model.

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