ABSTRACT

 In recent era there has been complains level offinancial institution performance which has raised an eyebrow on ascertaining whether external auditors ’ report can resuscitate tis menace. Thus, it is on this back drop that this work aimed to ascertain the impact ofexternal auditor's report on management decision making usingfirst bank PLC as a study area. The researchformulated the following three specific objectives: to examine the effect offinancial manipulation on management decision making, to examine the effect of effect of internal control on management decision making, and to determine the effect ofmanipulation offinancial report on management decision making. Thus, research questions and research hypotheses were structured in accordance with the specific objectives. In a bid to achieve a meaningful research study work, this research willreview related literatures on impact ofexternal auditor's report on management decision making. Which were sub-divided into four subheadings such conceptual framework, theoretical framework, empirical review and summary ofliterature review and literature in gap. However, in the quest to perfect this research; survey research design was adopted were data was sourced primarily through questionnaire instrument. The questionnaire instrument was used to 84 staffoffirst bank PLC ofwhich 80 were completelyfilledand returned. Thus, the data gatheredwere analyzed using simple regression. The analysis however made the followingfindings; That there is a significant effect offinancial manipulation on management decision making, That there is a significant effect of internal control system on management decision making and that manipulation on the part of reporting auditor has a significant effect on management decision making. Sequel to thefindings and conclusion, the research made the following recommendations that external Auditors were performing their duties as required of them however there are restrictions in the scope and priorities ofthe ExternalAuditor to specific nature ofwork activities related to risk Management. In a bid tofurther improve performance, it is recommendablefor management to ensure that there is diversity in the nature ofwork done and a balance stroked to ensure optimalperformance that First bank and other corporate organisation should maintain the existing control environment, information and communication, assurance services as per results ofthefindings which showed a positive significant effect on how this attributes to performance. However continuous improvement control activities, procedures and policies should be regularly revised at least annually to meet the very changing and complicated business environment and ensure they are communicated to the implementers and that First bank PLC and other organisation should allow their External Auditor to enjoy their independence so as to enable them improve in their efficiency and effectiveness.