HAVE THE AUDITORS’ POLICIES AND PRACTICES AND CORPORATE GOVERNANCE INFLUENCED THE INTERNET FINANCIAL REPORTING? - AN INSIGHT FROM LIBYAN BANKING SECTOR

The use of internet for financial reporting has grown increasingly to the extent that many firms have designed a website for publication of their financial data. Many organizations have accepted the internet as a useful tool for informing prospective and existing investors of the financial performance of the companies. However, it has been reported that the internet financial reporting creates several challenges for the companies and their auditors as well as the regulators. Therefore, this study examines the impact of auditors’ policies and practice factor; corporate governance practices and technology factors towards internet financial reporting in the Libyan banking sectors. Data were collected from the users of internet financial reporting using systematic random sampling. Meanwhile, 194 questionnaires were used for further analysis represent 65% response rate. The data were analysed using Structural Equation Modelling (CB-SEM). The findings indicated that auditors’ policies and practices; technology factors and corporate governance have statistically significant influence on internet financial reporting of Libyan Banking Sector. This indicates that auditors’ policies and practices; corporate governance and technology factors are the predictor for internet financial reporting. The results of study also indicate continued progress in the area of corporate reporting over the Internet. Almost all the companies considered in this study have a section within their website, which is used to present financial information. The study also recommended that the required expertise from the company needed to keep information updated to be of use with adequate security of information on the website. Finally, Libyan auditors should face the challenges of internet financial reporting as soon as possible, because their clients use the internet for their financial reporting purposely to serve the stakeholder interest. JEL: M40; G34; G21 Article visualizations: