INVESTORS place more faith in information from external sources than in company reports, according to a survey by the Association of Chartered Certified Accountants (ACCA) released on Wednesday.

Nearly two-thirds - 63 per cent - of the 300 investors surveyed said that managers have too much discretion over the financial numbers they report, and 41 per cent wanted to see auditing extended to quarterly reports.

Almost half of the survey respondents - 45 per cent - identified the annual report as being of no use, and 46 per cent believe mandatory quarterly reporting should be abandoned.

The survey also found that since the financial crisis, 69 per cent of investors have become more sceptical about company-provided information.