Earning forecast of companies is timely information that has more information content. The corporate managers play an important role in providing timely and accurately of Earning forecast. The aim of this study is to examine the effect of manager’s ability on accuracy of earning forecast by managers. In addition according to previous studies, it is expected that Audit Committee play an important role in this relationship. Then we use of Audit Committee as moderating variable. To assess the ability of managers, we use the model of Demirjian et al (2012) and to assess the ability of managers and use absolute deviation of actual profit and forecasts profit devided by absolute value of forecasts profit to measure accurately predict of manager’s earning .
The sample consisted of 82 companies for the period 1386 to 1393. The results indicate that the relationship between manager’s ability and the accuracy of earnings forecast is significant and positive, in other words, increasing the ability of managers reduced erroes in earning forcast. in addition, the existence of Audit Committee had positive significant effect on accuracy of earning forecast, but the interaction effect was not significant.