Impact Of External Auditor's Report On Managerial Decisions (A Case Study Of Tonimas Nig. Ltd)XXX

ABSTRACT

The Psychological fear of a damning external auditor 's report has strong influence in managerial decision. This research was carried out to examine the extent to which external auditor 's report had impacted on managerial decision of Tonimas Nigeria Ltd. To achieve this objective two single econometric models were specified and estimated using ordinary least squares fOLS] regression technique. The empirical results clearly indicated that external auditor 's report had a positive and significant impact in managerial decision and profitability of the company. It was recommended that the management should take every observation seriously, staff should always be briefed of the content of external auditor 's report, the external auditors procedure should be secured so that it is not compromised and serious disciplinary measured should be taken against staff indicated by the external auditor 's report.