Question

A study investigated the relationship between audit delay (the length of time from a company's fiscal year-end to the date of the auditor's report) and variables that describe the client and the auditor. Some of the independent variables that were included in this study follow: 

Industry A dummy variable coded 1 if the firm was an industrial company or if the firm was a bank, savings and loan, or insurance company. 

Public A dummy variable coded 1 If the company was traded on an organized exchange or over the counter; otherwise coded 0.

Quality A measure of overall quality of internal controls, as judged by the auditor, on a 5-point scale ranging from "virtually none" (1) to "excellentº (5). 

Finished A measure ranging from 1 to 4, as judged by the auditor, where 1 indicates all work performed subsequent to year-end" and 4 indicates "most work performed prior to year-end." 

Answer 1