Determining halo effect in auditing and its judgmental implications

Judgment is a process in which people think and comment on aspects of issue to be decided. Wrong decisions are often result of wrong judgments. Auditing is one of the professions that use judgment in decision-making processes. However, halo effect affects the auditor's perception as a decision maker, which reduces power of reasoning and analysis in decision making. In this regard, purpose of this study is to investigate halo effect on auditor’s judgment. The research period was 1398 and data needed to research were collected by distributing questionnaire among community of certified public accountants. Accordingly, data obtained from 122 supplementary questionnaires were analyzed using structural equations and smart PLS software. Findings show that halo effect has an effect on audit judgment and also code of professional conduct and personal characteristics play a mediating role in relationship between halo effect and audit judgment.However, halo effect affects the auditor's perception as a decision maker,