IFR refers to the use of the firms' web sites to disseminate information about the financial performance of the corporations. In this new approach, firms are using the Internet to market their companies to shareholders and investors. In IFR firms (that is, firms that have implemented IFR), the marketing activities no longer are limited to the products, and the firms' web sites are not dedicated solely to ordinary consumers.
The implementation of IFR has created new challenges for management and internal auditors who are responsible for establishing and reviewing the necessary controls, respectively. This article serves to initiate discussions on this matter. Based on studies in the US, the UK, Ireland and Hong Kong, key issues that management and internal auditors should attend to if their firms have implemented or plan to implement IFR are identified here.