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Accounting Information Systems for Decision Making pp 13–45Cite as

Are Auditors Interested in XBRL? A Qualitative Survey of Big Auditing Firms in Italy

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Part of the book series: Lecture Notes in Information Systems and Organisation ((LNISO,volume 3))

Abstract

Although academics and scholars have called attention to the opportunities and challenges of eXtensive Business Reporting Language (XBRL), new empirical evidence undermines academic assumptions about XBRL’s easy acceptance and widespread use by auditing professionals working in the field. This study examines whether independent auditors in Italy are really convinced about the utility and practicality of XBRL in their work. What is proposed here is a preliminary theoretical framework for surveying auditors’ interest in XBRL. Electronic questionnaires and semi-structured interviews were used to survey Italian auditors’ interest and test the proposed framework. Data analysis was structured by adopting a multiple case approach. Despite the mandatory requirement for Italian unlisted companies to report financial statements in XBRL, the independent auditors’ knowledge about XBRL remains quite low. As a result of the survey, a set of unexpected but clear-cut attitudes emerged to explain auditors’ limited interest in XBRL.

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Notes

  1. 1.

    Actually, in Italy the demand for voluntary audit services addressed to the big auditing firms has registered a significant decrease in recent years (from about 43 % in 2006 to about 32 % in 2010). However, this results both from the switch to mandatory audit services previously only voluntary, and the general financial crisis [28]. Since non-audit services represent one of the most dangerous threats to the independence of auditors, big auditing firms may also have decided to considerably reduce this business, especially when the Parmalat scandal obliged regulators to make more stringent requirements in order to guarantee auditors’ independence.

  2. 2.

    For instance, in 2005, the Audit Standards Board (ASB) of the AICPA published “Attest Engagements on Financial Information Included in XBRL Instance Documents” to provide guidance to accountants providing assurance services, and the same year the Public Company Accounting Oversight Board (PCAOB) published guidance for assurance on filings under the SEC Voluntary Filing Program (VFP).

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Authors and Affiliations

  1. Kore University of Enna, Enna, Italy

    Fabio La Rosa

  2. Department of Economics and Management, University of Pisa, Pisa, Italy

    Carlo Caserio

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  1. Fabio La Rosa
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  2. Carlo Caserio
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Editors and Affiliations

  1. Parthenope University of Naples, Via Medina 40, Naples, 80133, Italy

    Daniela Mancini

  2. , School of Economics and Management, Tilburg University, Spoorlaan 293, Tilburg, 5038, Netherlands

    Eddy H. J. Vaassen

  3. Via Vivaldi 2, Genova, 16126, Italy

    Renata Paola Dameri

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La Rosa, F., Caserio, C. (2013). Are Auditors Interested in XBRL? A Qualitative Survey of Big Auditing Firms in Italy. In: Mancini, D., Vaassen, E., Dameri, R. (eds) Accounting Information Systems for Decision Making. Lecture Notes in Information Systems and Organisation, vol 3. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-35761-9_2

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