Studyrelation earnings management and cash flow management induced restatements accounting with audit the size of the audit institution

From the investors point of view, accounting restatements is not just correcting previous performances, but it is some kind of forecasting future difficulties and their proper management. Also, it causes investors don’t trust managers. However, the accounting restatements in Iran is growing faster than ever in the past few years. In this study, we aim to investigate the relationship between audit size and accounting restatements. Also, it includes restatement derived from cash flow which affects cash flow statement. This study includes non-cash flow restatement derived from accruals which affects income statement and balance sheet. the study is considered the point of view practical and its method is descriptive-correlation. The study populationincludes 90 Iranian listed firms in a 5 year-period between 2011-2015. In order to evaluation researcch parameters used regression logestic model. we calculate descriptive statistics of variables for each of models in study by Eviews 7 software then hypotheses of research was tested with appropriate statistical methods by R.3.1.1 software.