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The Accounting Review Vol. 56 No. 4 1981

The Effects of Audit Reports on Chartered Financial Analysts' Perceptions of the Source of Financial-Statement and Audit-Report Messages.

William T. Bailey

Abstract

The paper reports the results of a study of the information that four types of audit reports convey to Chartered Financial Analysts about the sources of both financial-statement and audit-report messages. Four hypotheses are tested, two of which concern the perceived identity of the source of specific financial-statement messages. Two others concern the effect of the audit reports on analysts' perceptions of the credibility of the source of financial-statement messages and of the auditor. The study indicates that auditors are perceived to be much more involved in the communication of financial-statement messages than many people realize. This perceived involvement and the information that audit reports convey about the auditor's credibility combine to produce some unsuspected credibility effects.

DOI
10.2308/tar-4481743
Volume
56
Issue
4
Pages
882-896
Language
en
Sources
openalex crossref

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