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The paper investigates auditors' reaction to financial restatement based on audit fees. We find that auditors do react to financial restatement and charge higher audit fees of firms which disclose financial restatement significantly. And auditors pay more attention to the financial restatement due to fraud and the risk-adjusted of Audit Fee to the restatement due to fraud is much greater than the others. Meanwhile the promulgation of New Audit Standard enhances the auditors' reaction to restatement. The risk-adjusted of audit fee to the restatement increase significantly and the degree of augment is much higher to the restatement due to fraud. The results indicate that audit is an effective exterior corporate governance mechanism and New Audit Standard advances the function of audit's corporate governance.