Financial restatement of listed company and auditor change

In the domestic and international capital markets, financial restatement of listed company is becoming increasingly prominent, seriously affected the confidence of investors in listed companies. Based on this background, this study attempts to analysis the relationship between external auditing and financial restatements from the auditor´s perspective, then, analysis risk evaluation of auditor and risk reaction for financial restatements deeply. We find, restatement companies are significantly likely to change auditor than non-restatement companies when controlling of other factors in terms; Different causes of financial restatements on auditor changes affected by the presence of significant difference. Furthermore, when the restatements are caused by earnings manipulation, Restatement Company is significantly likely to change auditor, but internal control deficiency, the complex business and accounting standards characteristics is not significant.