...' auditors and the management of the restating firms. Restatements prompted by the SEC tend to be larger than those prompted by other entities. They also tend to involve firms with high profitability before the restatement. The Sarbanes‐Oxley act is the latest significant piece of legislation that impacts...

... disclosure, none has investigated the influence of audit committee on mandatory disclosure. The present study is, therefore, an attempt to fill this gap in the literature. The remainder of the paper is arranged as follows. The next section, Section two, describes the legislative and institutional structures...