AUDITOR–STAKEHOLDER RELATIONSHIPAND PUBLIC TRUST IN FINANCIAL REPORTING.

The reliability of financial reports hinges on audit quality and stakeholder trust. While many studies have explored audit quality and expectation gaps, few have examined how auditors foster public confidence through their relationships. This research examined the impact of auditor-stakeholder interactions on public trust in Nigerian financial reports. Grounded in Stakeholder, Agency, Information Asymmetry, and Trust theories, it conceptualised the auditor–stakeholder relationship as a multifaceted construct encompassing communication, post-audit engagement, gap management, transparent reporting, disclosure of limitations, and stakeholder involvement. The study population is infinite, and the sample size of 196 was calculated using Cochran's formula. Data were collected via an online questionnaire on Google Forms, adapted from validated tools measuring audit expectation gaps, auditor communication, stakeholder perceptions, audit credibility, and public trust, with Nigeriaspecific modifications. Analysis was conducted using ordinary least squares regression. The study revealed that regular engagement between auditors and stakeholders boosts public trust (â = 1.1765 and p < 0.001), indicating that increased communication enhances trust. Audit findings reported clearly and transparently also positively influence trust (â = 0.5048 and p = 0.023). Other communication variables are positively related but not significant. This study advances the auditing literature by broadening the understanding of audit credibility from a purely technical compliance perspective to a relational viewpoint. Future research could employ longitudinal or mixed-methods approaches to examine how ongoing auditor–stakeholder engagement influences trust over time.