Abstract
This study investigates audit firm specialization in settings where managers have incentives to modify earnings to achieve analysts' earnings forecasts. The results indicate that audit firms that have a large market share of clients within a particular industry, and audit firms that receive a significant portion of their firm revenues from a specific industry, are associated with audited financial statement earnings that increase absolute levels of analysts' forecast error and are less likely to just meet or beat analysts' forecasts.
| Original language | English |
|---|---|
| Pages (from-to) | 109-136 |
| Number of pages | 28 |
| Journal | Auditing |
| Volume | 27 |
| Issue number | 2 |
| DOIs | |
| State | Published - Nov 2008 |
Keywords
- Analysts' forecast error
- Audit quality
- Auditor specialization
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics
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