Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In an article in Accounting and Business Research, Carslaw and Kaplan investigate factors that influence audit delay for firms in New Zealand. Audit delay, which

In an article in Accounting and Business Research, Carslaw and Kaplan investigate factors that influence audit delay for firms in New Zealand. Audit delay, which is defined to be the length of time (in days) from a companys financial year-end to the date of the auditors report, has been found to affect the market reaction to the report. This is because late reports often seem to be associated with lower returns and early reports often seem to be associated with higher returns. Carslaw and Kaplan investigated audit delay for two kinds of public companiesowner controlled and manager-controlled companies. Here a company is considered to be owner controlled if 30 percent or more of the common stock is controlled by a single outside investor (an investor not part of the management group or board of directors). Otherwise, a company is considered manager controlled. It was felt that the type of control influences audit delay. To quote Carslaw and Kaplan: Large external investors, having an acute need for timely information, may be expected to pressure the company and auditor to start and to complete the audit as rapidly as practicable. Suppose that public owner-controlled companies in New Zealand have an audit delay with an assumption that the population standard deviation equals 45 days. How large a random sample of public owner-controlled companies is needed to make us... Your answers must be whole numbers. (a) 95% confident that x ,the sample mean audit delay, is within a margin of error of four days of , the population mean audit delay? n = companies (b) 99% confident that x ,the sample mean audit delay, is within a margin of error of four days of ? n = companies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Development Finance In China Theory And Implementation Enrich Series On Development Finance In China Volume 1

Authors: Enrich Professional Publishing

1st Edition

9814298107, 9814298115, 9789814298117

More Books

Students also viewed these Finance questions

Question

=+Do you need to use a buffer? Why or why not?

Answered: 1 week ago

Question

9. Acquire group actions history data.

Answered: 1 week ago