The Effect of Financial Restatements on Audit Procedures planning and Auditor Report: An Experimental Study

The research aims to study the financial restatements from accounting and professional perspective and the impact of the financial restatements on his judgments for audit procedures planning and the audit report .This research also aims to test this relationship through An Experimental study by using a sample of auditors in Egypt.
 To achieve this objective, the researcher reviewed the accounting requirements for financial restatements from professional perspective in the light of previous Studies and The accounting Standards, and analyzing the most important Professional standards and previous studies on the impact of financial restatements on audit procedures planning, and the auditor's report as well. The research also aims to conduct An Experimental study on a sample of auditors, in a sample of accounting Firms in Egypt.
 The research concluded that the accounting standards agree with the previous Studies related to financial restatements. The Prior Years Errors are accounted forby reissuing the compared financial statements of the previous years to reveal the effect of correcting the error by considering the disclosure of the nature of that error and the amount
amended in the financial statements of prior years that is disclosed in the financial statements of that year .The research concluded that the accounting standards agree with The Results of Previous studies that there is not an obligation on the  auditor, after his report is issued to continue in the performance of new audit procedures for the financial statements previously issued and attached audit report, unless  he discovered new information affecting the financial statements, and thus affect the report, in which case he must notify the Management of the need to inform the current and potential users of  the financial statements issued in advance and is accompanied by the amended report. And thus a reissuance of the financial statements, which means that the auditor will make some adjustments to the audit plan and program to the firm on the amended financial statements to obtain reasonable assurance about the creditability of these Financial statements that they are free from material Misstatements, and then to the auditor's report ..The results of the experimental study confirm that auditors in Egypt are familiar with the majority of accounting requirements for financial restatements. The results also support the existence of the impact of the financial restatements to plan audit procedures, while not in favor of the existence of the impact of the financial restatements to the auditor's report.