The impact of the external auditor's report on the rationalization of capital budget decisions

Abstract

The research aims to identify the impact of the external auditor's report on the rationalization of capital budget decisions, especially the investment decisions of investors, at a time when the world is witnessing economic changes characterized by uncertainty, risk, and shifts in the investment market, which led to the need for the presence of accounting and financial information that is characterized by reliability and credibility, which is provided by the external auditor's report. Where the research problem revolves around the importance and impact of the external auditor's report in rationalizing capital budget decisions and making the right investment decision. To achieve the goal of the research, the questionnaire tool was used to collect data and then process it using the statistical program (SPSS). As this questionnaire was distributed to a sample of investors and external auditors, the research reached a set of results, the most important of which is the existence of a statistically significant significant influence relationship for the role of the external auditor's report in rationalizing capital budget decisions in the environment of the holy governorate of Karbala.