What is it about?
We consistently find that financial constraints have a positive effect on both firm- and partner-level audit opinion shopping. Moderation analyses also reveal that exchange rate fluctuations intensify partner-level audit opinion shopping, and while competition directly reduces both levels of audit opinion shopping, it is irrelevant to constraint-driven audit opinion shopping. Finally, ancillary findings strongly indicate that large local audit firms in Iran curb firm-level shopping but, paradoxically, increase partner-level audit opinion shopping.
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Why is it important?
By proving that audit opinion shoppers pivot to the engagement partner when the firm-level door is locked, the study is exposing a “displacement effect.” This suggests that audit quality is not just a firm-wide policy, but a granular, interpersonal negotiation influenced by financial desperation.
Perspectives
Personally, I believe this paper contributes to existing knowledge by illustrating how nuanced elements of a broad theoretical idea may yield distinct context-specific implications.
Ali Daemi
Imam Reza University
Read the Original
This page is a summary of: How financial constraints intensify audit opinion shopping at the firm and partner levels: evidence from an emerging market, Journal of Accounting in Emerging Economies, May 2026, Emerald,
DOI: 10.1108/jaee-04-2025-0172.
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