Does Audit Opinion Shopping Exist in the Internal Control Audit? ——Empirical Evidence from Internal Control Audit of China’s Listed Companies
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Abstract Internal control audit is an important regulatory measure and institutional arrangement for the administrator level to regulate internal control of the company and to safeguard the interests of the investors. However, due to the unpredictability in the formation of the internal control audit opinions, it is conducive to the occurrence of internal control opinion shopping. The empirical results suggest that there does exist certain scope of audit opinions shopping in China’s internal audit control, and it is more significant in non-state-owned companies. The shopping behavior can be restrained by upgrading high auditor industry specialization. Further analysis finds that internal control auditor can not help the company to correct internal control deficiencies, which shows that there is audit opinion shopping in the improvement of internal audit control. This paper enriches the empirical evidence for internal control opinion shopping in China and is also of great realistic significance and reference value for investors and regulators to make investment decisions and formulate relevant policies.
ZHANG Li-wen,ZHANG Li-min. Does Audit Opinion Shopping Exist in the Internal Control Audit? ——Empirical Evidence from Internal Control Audit of China’s Listed Companies. Economic Survey, 2019, 36(3): 0118.
2019, Vol. 36 
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