Abstract. This study proposes that comparison of management earnings forecasts with audited, reported earnings provides an approach to the measurement of audit quality. Assuming that managers have incentives to minimize the difference between forecasted and reported income, higher†quality audit firms will tend to be associated with larger forecast errors. Therefore if, as previous literature suggests, larger auditing firms provide higher†quality audits than do smaller auditing firms, larger auditing firms will tend to be associated with larger forecast errors, all else being equal. Data from the Toronto Stock Exchange are used to examine this proposition. After controlling for client characteristics such as risk, the results indicate that larger auditing firms tend to be associated with larger forecast errors consistent with the proposition that, other things being equal, larger auditing firms provide higher†quality audits than do small auditing firms. RA©sumA©. Les auteurs proposent une technique de mesure de la qualitA© de la vA©rification qui consiste A comparer les prA©visions de la direction relatives aux bA©nA©fices et les bA©nA©fices dA©clarA©s qui ont A©tA© vA©rifiA©s. Si l'on suppose que les gestionnaires ont intA©rAat A minimiser l'A©cart entre les bA©nA©fices prA©vus et les bA©nA©fices dA©clarA©s, les vA©rificateurs de haut calibre auront tendance A Aatre associA©s A des erreurs prA©visionnelles plus importantes. Par consA©quent, si, comme l'ont suggA©rA© les A©tudes antA©rieures, les cabinets d'experts†comptables importants offrent des services de vA©rification de meilleure qualitA© que les cabinets d'experts†comptables de taille plus modeste, les cabinets d'experts†comptables importants auront tendance A Aatre associA©s aux erreurs prA©visionnelles plus grandes, toutes choses A©tant A©gales. Les auteurs utilisent les donnA©es de la Bourse de Toronto pour vA©rifier cette affirmation. Une fois contrA´lA©es les caractA©ristiques du client telles que le risque, les rA©sultats indiquent que les cabinets d'experts†comptables de grande taille tendent A Aatre associA©s aux erreurs prA©visionnelles plus importantes, ce qui confirme l'hypothA¨se voulant que, toutes choses A©tant A©gales, les cabinets d'experts†comptables de grande taille offrent des services de vA©rification de meilleure qualitA© que les cabinets d'experts†comptables de taille plus petite.
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