Public Cofidence in Audited Report: An Empirical Review

Abstract

Audited report is of no doubt a great influence on the users of the report. In the midst of the seemly ill-conducive environment the question arises, is to what extent users of this information can rely on the reported information as a basis for their decision. The primary aim of this research is to determine the level of public confidence on audited report and also know the extent to which users of this information are aware of the nature of the report. In making this possible, information were gather from both the primary as well as the secondary sources and in analyzing the data gathered from the primary source the non-parametric statistical tool (z-test) was employed. The study revealed that audited report does influence users in positive ways, in as much as most of the users are not aware of the functioning or the activities of audit carried out in companies. Also, most users do not have the ability to analyze and interpret these reports. Premised on the above, it was recommended that the auditors should be given freehand in the course of the audit work; relevant regulatory bodies should constantly enlighten the general public and members of the audit/accounting profession.

Keywords: Auditing, decision making, public confidence