The Effect of Audit Quality, Real and Accrual Earnings Management on Financial Statement Restatements

A significant increase in the accounting restatements has attracted, academic attention, rule and public attention with considering all its consequences,. In this regard, the purpose of this study is to investigate the relationship between of audit quality, real and accrual earnings management on financial statement restatements in listed companies on Tehran Stock Exchange. In this purpose a sample of consisting of 120 listed companies in Tehran stock exchange during the period 2010 to 2016 was selected. In order to analyze the hypothesis was used logistic regression model.. The research findings show that audit quality hast negative impact on restatement, while real and accrual earning management has positive impact on restatement. In other words, we can say the high level of audit quality, reduce the likelihood of restatements and with increase in real and accrual earnings management, increase the likelihood of restatements.