This paper proves the existence of information transfer due to restatement in a form other than market's concurrent price adjustment during restatement announcement. We find that auditor's conservatism is positively associated with the pervasiveness of restatements in client's industry; the more firms announced restatements recently, the higher level of conservative attitude auditors hold. Moreover, the level of conservatism is further prominent if CPA firms are accountable for more reporting failures in client's industry. Overall, our evidence shows a feasible way in testing information transfer with measures other than returns, documenting that firm's accounting discretion is restricted owing to peer firms' restating frequency.