| Summary: | 碩士 === 國立成功大學 === 會計學系碩博士班 === 94 === This study investigates corporation’s opinion-shopping strategy, primarily including two sections. In the first section, we examine whether managements will engage in opinion-shopping when they expect to receive an unmodified audit opinion. In the second section, we examine whether managements receive a post ante unmodified opinion as their expectation after engaging in opinion-shopping.
Our results indicate that managements will engage in opinion-shopping when they expect the probability of receiving modified opinion is lower after switching auditor. On the contrary, managements will engage in opinion-shopping when they expect the probability of receiving unmodified opinion is higher after retaining auditor. Thus, we demonstrate that in order to minimize the probability of receiving a modified opinion, managements will adopt the opinion-shopping strategy.
In addition, according to our preliminary results, ignoring other factors, we find that managements who expect to receive unmodified opinion after switching auditors and engage in opinion-shopping did not receive more favorable opinions than managements who did not engage in opinion-shopping. Thus, managements do not successfully engage in opinion-shopping. On the other hand, managements who expect to receive unmodified opinion after retaining auditors and engage in opinion-shopping did receive more favorable opinions than managements who did not engage in opinion-shopping. Therefore, managements do successfully engage in opinion-shopping.
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