Opinion shopping,
Definition of Opinion shopping:
Unlawful action of seeking auditors that are willing to cast the companys accounting procedures in a positive light despite the reality of the situation. Questionable accounting practices can put a company into an unwanted position, so this why some companies choose to opinion shop.
Opinion shopping is a dubious practice that involves finding an auditor who will overlook any shortcomings in the company's financial reporting. Opinion shopping is prohibited by the Securities and Exchange Commission (SEC).
Opinion shopping is the practice of searching for an outside auditor who will provide a favorable opinion of the company's financial condition. An accountant's opinion (also called auditor's certificate) is intended to show that the company's financials are fairly presented and that they conform to the generally accepted accounting principles (GAAP). This opinion is important to lenders and investors who rely on independent views of a company's books and records when making decisions.
Meaning of Opinion shopping & Opinion shopping Definition
