Thus, there appears to be very little opinion shopping
(if any) occurring post-SOX.
Fritz expects a great deal of scrutiny from investigators on Lehman's opinion shopping
and says it could raise problems for the defunct company's former in-house lawyers.
When first addressed by the Securities and Exchange Commission (SEC) as a means to curtail opinion shopping
, Form 8-K filings were required only when there was a disagreement between a company and its auditors.
Evidence on opinion shopping
from audit opinion conservatism.
Matt Howell, Deloitte's technical partner, says his firm would not get involved in opinion shopping
, and it is already implementing IAS 29 where applicable.
To deter opinion shopping
and ensure that opinions are based on the actual facts of a transaction rather than unjustified assumptions, the scope of the reasonable cause exception should be clarified.
Further, it may be easier for lenders to go opinion shopping for another appraiser if the desired value change is small, as conservative assumptions are more easily justifiable than a large value change.
12) Although there is considerable ad hoc oral discussion of individual instances of opinion shopping threats, very few examples of client pressure have appeared in print.
He emphasized that audit committees' responsibility goes beyond ensuring they're not opinion shopping
, which is illegal.
The practice of opinion shopping
may adversely affect the perception of audit constituencies about the independent audit function, and thus the credibility of the accounting profession.
They also viewed as particularly risky clients that placed undue emphasis on meeting quantitative targets, engaged in opinion shopping
and were very aggressive in their financial reporting.
Their concern was so-called opinion shopping
and what could be done to make certain that professionalism did not give way to commercialism.