(Original Article)

Background: In institutes, what is known (intellectual capital) is great importance than what is possessed (physical capital). Today auditing institutes are increasingly involved in an ethical dilemma, i.e. the conditions that misdeed and right acts should be defined once again. Hence, the aim of this study was to study the effect of environment consequences on auditors’ ethical behavior based on their amount of intellectual capital.

Method: The method of this study is practical survey. Statistical population includes all of employed members in auditing institutes of Iranian association of certified public accountants. Among all, 142 subjects were chosen using Morgan table. The study tool was questionnaire and gained data were analyzed using average comparison test.

Results: Research findings suggested that decision consequences and also managers’ intention effect on auditors’ ethical sensitivity with high intellectual capital and on auditors’ ethical judgment. Finally, despite decision consequences and managers’ intents, auditors’ intellectual capital doesn’t effect on punishment against other auditors.

Conclusion: Audit environment consequences effect on ethical behaviors (other than choosing punishment against other auditors that trouble shortcoming in their duties) with high intellectual capital. Also, Iranian association of certified public accountants and auditing institutes can give priority to intellectual capital increase level in their planning