THE ROLES OF AUDITORS’ REPORT IN INVESTORS’ DECISION MAKING IN NIGERIA
Abstract:Audit reports are an indispensable element in the decision
process of lenders and investors. This work examined the roles of auditors’
report in investors’ decision making in Nigeria. Secondary data was used and
descriptive method to analyze the mean, median, maximum, minimum and standard
deviation, while Tobin’s Q is applied to measure the influence of independent
variables on the dependent variables for future firm performance through unit
root test, ADF test and regression equation between both variables. Findings
revealed that the auditors’ report has positive effect on the investors’
decision making in Nigeria, which is an indication that lack of proper
auditors’ report will lead to poor investors’ decisions. The study recommended
that auditors’ report should be detailed and comprehensive because users rely
on audit report in making decisions, be it investing and, or financing.