This study examines the reliability of restatements to analyze the reasons of the lower rate of restatements, which can represent an absence of errors or a lack of detection and disclosure of errors’ We construct the misstatement detection model and get the misstatement risk index（F-score）. The result shows a less significant relationship between restatement frequency and F-score, and lower sensitivity suggests less prudent detection of existing accounting errors and irregularities. A further analysis finds that the legal environment affects companies’ restatement selection. Firms from strong rule of law regions have less frequent restatements and show a positive relationship between restatement frequency and misstatement risks. It can indicate a lack of accounting errors and irregularities’ Firms from provinces with a weak rule of law are more likely to restate, which can be a signal of opportunistic reporting. When a company has a high misstatement risk, a better legal environment helps the company to correct and disclose accounting irregularities. Our study highlights that a positive relation between restatements and financial reporting quality depends on the reliable detection and disclosure of misstatements.