The Effects of Auditor’s Characteristics on the Financial Restatement

This research aims to study the effects of auditor’s characteristics that consist ofAuditor size, auditor rotation and the type of auditor’s report upon the financial restatementin Tehran stock exchange. Hence, 130 companies are selected and research hypotheses are examined by least square regression. The findings show that there are significant negative relationship between the mean of restated amounts in financial statement with the auditor size and rotation. Therefore, changing of auditor firm and increasing the employee of auditor firms reduce the restated amounts in financial statement. However, the relationship between type of auditor’s report and restated amounts in financial statement is insignificant.