Which of the following is an example of opinion shopping by a company?
A) Changing auditors due to the quality of work by the auditors
B) Changing auditors due to wanting a different accounting treatment than required by the external auditor
C) Changing auditors due to the size of the audit fees
D) Changing auditors due to conflicts over the nature and scope of the audit

Question

Quizplus · Accepted Answer

Opinion shopping refers to the practice of seeking out auditors who provide favorable opinions. In Choice B, the company is changing auditors specifically because they want a different accounting treatment than what is required by the external auditor. This implies that they are looking for an auditor who will provide a more favorable opinion, which is an example of opinion shopping. Choices A, C, and D do not necessarily involve seeking out a more favorable opinion.

Which of the Following Is an Example of Opinion Shopping