“…In order to meet such objectives, firms overstate income by overstating revenues, assets and profits, or, understating expenses, liabilities and losses (Dechow et al, 2011;Dalnial, Kamaluddin, Sanusi, & Khairuddin, 2014). And, poor monitoring from the external force provide greater opportunity for financial misstatement to take place (Abdullah et al, 2010;Hasnan et al, 2013;Shanmugam et al 2019aShanmugam et al , 2019b). Thus, this study attempts to examine whether there is a significant difference in mean for profitability, market incentive and audit quality variables between restatement and non-restatement firms.…”