Audit market competition, opinion shopping, and audit quality: Evidence from audit firms in Nigeria

Purpose: This study is motivated by the intense competition in the audit market environment which fosters audit opinion shopping practices, eventually raising critical concerns about the credibility of audit. The research examines the extent of audit opinion shopping in Nigeria, the influence of market competition on such behaviour, and the implications for audit quality. Methodology: A descriptive and correlational research design was adopted, using primary data collected from 200 auditors. Responses were analyzed using the Statistical Package for the Social Sciences (SPSS), employing descriptive statistics, reliability tests, and regression techniques. Results and conclusion: The descriptive analysis results revealed evidence of audit opinion shopping among Nigerian firms, with market competition exerting a significant influence on the likelihood of such practices. The findings also revealed that opinion shopping significantly affects audit quality, particularly in relation to timeliness, comparability, and reliability of financial statements. The study concludes that while competition may enhance efficiency in the audit market, it also provides opportunities for opportunistic opinion shopping, which undermines audit quality. Implication of findings: It recommends stronger regulatory oversight, improved enforcement of auditor independence, and the adoption of governance mechanisms that discourage frequent auditors switching for favourable opinions.