Auditors Rated #1 (Again) For Retail Investor Confidence

Chartered Accountants Australia and New Zealand (CAANZ) has just released its sixth annual Australian Retail Investor Confidence Survey for 2024 (the Survey). For the sixth year in a row, the Survey showed that independent auditors were rated number 1 for trust, investor protection, confidence and market integrity.

The Survey also covered areas of concern for investors and their current willingness to invest in the Australian capital markets. More than half of retail investors surveyed said they are currently willing to invest or add to their existing investments. The most commonly expressed areas of concern about capital markets investing were:

• ongoing high inflation

• the rising cost of living

• high interest rates and

• global geopolitical tensions.

Investor confidence in the Australian capital markets increased to 87% of respondents versus 83% in 2023, whilst trust in audited financial statements issued by Australian listed companies increased again to 91% compared to 90% in 2023.

Interestingly, Survey respondents expressed their view that Australian independent auditors can be relied upon as they are:

• well regulated and

• skilled at what they do.

These positive Survey results reflect the tremendous value that strong accounting and auditing standard setters, skilled financial statement preparers, independent auditors and financial market regulators collectively provide to all participants in the Australian capital markets.

The Survey also showed that retail investors are finding published financial statements easier to read and understand, reflecting recent efforts to remove boilerplate disclosures and those that do not add value to the users.

Respondents also reported that they would value more flexible online digital financial reporting in the future.