Inspector shopping explained

Inspector shopping is a colloquial term referring to the deliberate manipulation of the inspector selection processes to secure more favorable outcomes or avoid unfavorable consequences during assessments, audits, and inspections. Inspector shopping involves strategically selecting inspectors based on their perceived inexperience, leniency, or susceptibility to bribery or other corruption. Individuals or entities may delay inspections until a preferred inspector is available, request a specific inspector for a job, or manipulate the selection process to ensure a desired inspector is assigned to their case. The term "inspector shopping" has a negative connotation and its corrupt gamesmanship and manipulation undermine the legitimacy of the regulatory process in order to obtain an unfair advantage.

This practice occurs in various industries, including construction, food safety, environmental regulation, healthcare, and manufacturing. Inspector shopping negatively impacts public safety, consumer protection, and environmental standards, as it leads to substandard work, dangerous products, or hazardous conditions going unnoticed or unreported.

To mitigate the risks posed by inspector shopping and preserve the integrity of the inspection processes, regulatory agencies and industries have implemented countermeasures including random inspector assignment, regular rotation of inspection personnel, and rigorous monitoring of inspector selection protocols.

Aviation

In Australia, a 2014 aviation regulatory review found that inspector shopping was prevalent.[1]

In the United States, Boeing manufacturing and design issues have been attributed in part to inspector shopping.[2]

Taxation

In international taxation, it was common practice to shop for a favorable tax inspector, though frowned upon.[3] [4] [5]

See also

Notes and References

  1. Web site: Aviation Safety Regulation Review . Australian Government . 17 May 2024 . May 2014.
  2. News: Chokshi . Niraj . Ember . Sydney . 4 Takeaways About Boeing's Quality Problems . 16 April 2024 . The New York Times . March 28, 2024.
  3. Book: Harris . Peter . Cogan . Dominic de . Studies in the History of Tax Law, Volume 9 . 19 September 2019 . Bloomsbury Publishing . 978-1-5099-2494-3 . 400 . 16 May 2024 . en . tax ruling inspectors, working solitarily, make different decisions in specific cases. Fully aware of this difference, stakeholders try to make use of this by submitting the same request to various inspections. Thephenonmen has been given the name 'inspector shipping,' which, in the opinion of the Court of Auditors, is undesirable..
  4. Lederman . Leandra . The Untold Tale of a Tax Rulings Haven . Stanford Journal of Law, Business & Finance . April 26, 2024 . 29 . 1 . 17 May 2024.
  5. Wágner . Tamás Zoltán . Detrimental effects of tax havens and the case of the Dutch tax system . Pro Futuro . 30 April 2020 . 9 . 3 . 10.26521/Profuturo/2019/3/5766. 2437/319702 . free .