Audit Quality and Auditor Size: An Evaluation of Reputation and Deep Pockets Hypotheses
检验了大型审计师更准确的原因，发现诉讼风险（深口袋假说）比声誉损失更能解释这一现象，对理解审计市场结构有参考价值。
Empirical studies have shown that large auditors are more accurate than small auditors. The reputation hypothesis states that large auditors have more incentive to be accurate because an inaccurate report may lead to a loss of client‐specific rents (DeAngelo, 1981). The deep pockets hypothesis states that large auditors should be more accurate because they have greater wealth at risk from litigation (Dye, 1993). This paper presents evidence on the relationship between auditor size and litigation and on the market shares of criticised and uncriticised auditors – the findings give greater support to the deep pockets hypothesis than the reputation hypothesis.