I agree that most people don't know. I actually use it to my advantage.
All of our comps are medals, so if i start badly (for example a treble on the first), i just say to myself 'thats a double'. It helps that i couldnt care less how i get on in the actual comp. my competition is against myself and my handicap, nothing else.
my mate had an 11 on our 3rd on saturday, but once he'd hit his 7th shot i just said 'dont worry' its a 7 for handicap.
totally, i had an 8 on the 3rd ( par 4) on sat so almost my whole handicap gone on one hole, still made buffer no problem