Usefulness of audit report in loan decisions granted by Tunisian banks: an experimental study

The usefulness of audit report and the effectiveness of a qualified audit opinion in communicating information about the outcome of audit engagement represent an ongoing debate in the auditing profession. Our research contributes to this important debate by providing experimental evidence regarding the type of audit report (e.g., unqualified vs. qualified auditor opinion) effects of bankers credit decision. Our experimental research approach is based on a contact from 76 loan officers among 20 Tunisian banks in year 2009. We find that the Tunisian users, credit and loan officers in particular, perceived a qualified audit opinion as having a negative impact on the credibility of financial statements and the subsequent decision to grant credits. However, the result did not obtain sufficient evidence that the qualification audit opinion is considered as sufficient information to affect banker's decisions. Audit report occupies the fourth place among the other sources of information's necessaries for the evaluation of the customer and has limited 'information contents' to bankers.