Abstract

The worry audit effects of extended edit relation to employer on auditor independence lead to compilation of law based on relation limitation while auditor mandatory replacement is approach to increase independency and legislators pointed to it, there are conflict evidences to support this issue. Due to legislators worry about effects of extended audit tenure, this research is related to extended audit tenure effect on auditor independency. auditor independency is measured based on 5 factors as self interest threats, self review threats, advocacy threats, familiarity threats and intimidation threats. To gather data, questionnaire is applied and 108 persons of Iranian association of certified public accountants completed them and due to abnormal data, sample double sign test is used.
Research results confirm effects of extended audit tenure on independency and six hypothesizes are confirmed research findings show auditor independency have been threatened during extended audit tenure more than short term tenure. Therefore, audit mandatory replacement is not necessary during extended audit tenure.