ABSTRACT

This research project is a study that deals with the impact of external auditor's report on the decision making process in limited liability companies. The major objective was to ascertain or identify whether an objective audited account of the external auditor could result to the profitability of the organization, and whether reliance by potential and actual investors on the external auditor's audited account will increase the equity on profitability of the organization, and to determined the impact of good decision making by the management on the profitability, efficiency, and economy in the running of the business. However, to ascertain whether defective and weak audited report will adversely affect the organization. To solve this research problem, both primary and secondary data were collected. The primary sources of data include the use of questionnaires and interviews including observations while secondary sources of data collection includes materials from journals, talks presented at different seminars as well as textbooks, project works, and other manuals. The research 0$ instruments used in collecting the data were questionnaires and oral interview. The population was 100, sample size 80, the instrument of statistics used to calculate the sample size was Taro Yameni. In organizing and presenting data collected tables and percentages were used. The various hypothesis were tested using chi-square analysis techniques. Based on the findings, the researcher discovered that business outfit have little or insignificant adherence to auditors recommendations concerning managerial decisions on certain investment and financial proposals. Thus inability of management to establish an effective and efficient internal control system. It was recommended that business organization both big and small should maintain an efficient accounting system, engage the services of external auditors, strictly adhere to the recommendations usually contained in the report handed over to them by their auditors and ensure that proper books of accounts are kept in a division/department of their company and accounting officer should be regularly sponsored to attend seminars and workshops.