Research Article
Mojtaba Adili, Ahmad Khodamipo
Abstract
Legislators have enacted laws and standards to develop the ethical conduct among auditors. However, unethical behaviours among auditors still take place. Audit standards require auditors to understand objectivity risks and do something to avoid contact with these risks. The suggested reason behind constrained auditor objectivity has been devoted to auditors' financial incentives and long audit tenure. Regulators propose auditor rotation against constrained auditor judgment induced by the auditor-client relationship. Recent research has challenged those assumptions and questioned the potency of auditor rotation to counteract shorttenure risks to auditor objectivity. This study examines whether audit team norms improve the objectivity of auditor judgment. A cross-sectional design was used and responses from Iranian auditors were analyzed statistically. The findings indicate that audit team norms are associated with improved auditor objectivity.