Alzahra University, Faculty of Social Sciences and Economics Empirical Research in Accounting, Fall 2023, V. 13, No. 49, pp.165-188 Auditor Industry Range and Auditors Exercise Professional Skepticism 1 Hassan Farajzadeh Dehkordi 2 , Milad Mafi 3 Received: 2023/02/11 Accepted: 2023/05/21 Abstract In this research, we investigate the relationship between the auditor industry range, the extent to which an auditor has experience in auditing clients from different industries, and the auditor's professional skepticism. Using the data from 211 firms listed on the Tehran Stock Exchange, during the period from 1389 to 1400 (1,785 firm- year observations), the results show that auditors with a wide range of industry experiences are more likely to require their clients to adjust misstatements in their financial statements due to distortions and mistakes. In particular, this relationship is stronger for downward audit adjustments as well as for higher magnitude of audit adjustments. Also, a higher auditor industry range is negatively associated with the likelihood that the financial statements will be restated in the next period. Finally, financial statements audited by these auditors, have less discretionary accruals. Overall, findings suggest that an auditor’s diverse experiences in different industries can facilitate the development of professional skepticism. Keyword: Industry Range, Professional Skepticism, Audit Adjustment, Experience, Cognitive Entrenchment. JEL Classification: M41. 1. DOI: 10.22051/JERA.2023.42879.3101 2. Assistant Professor, Department of Accounting, Faculty of Financial Sciences, Kharazmi University, Tehran, Iran. (Corresponding Author). (ha.dehkordi@khu.ac.ir). 3. M.Sc. Student, Department of Accounting, Faculty of Financial Sciences, Kharazmi University, Tehran, Iran. (milad96075@gmail.com). https://jera.alzahra.ac.ir Research Paper