Investors Reliance On Financial Statements:

CHAPTER ONE INTRODUCTION 1.1      Background of the study According to America Accounting Association, Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgment and decisions by users of information. From this definition, it can be seen that the main objective of accounting is to provide economic information that will enable the users to make decisions. According to Patrick .A. Casabona (2006), Investors and creditors throughout the world base their decision on the information published in various financial and economic reports issu…