. The purpose of this paper is to investigate the role of accounting standards setting approaches and auditor expert on the aggressive financial reporting. The statistical sample of research participation includes 120 auditors which were selected by available sampling method. The data was collected by a questionnaire-based survey and variance analysis (ANOVA) is use for the test of hypothesis. The results indicate that accounting standards setting approaches and auditor expert effect on the aggressive financial reporting. Also, the results indicate that applying the rules-based accounting standard, auditor expert have effect on the aggressive financial reporting. But, when used the principles based accounting standard, auditor expert have not effect on the aggressive financial reporting.