Overall, our findings are consistent with the deep pocket hypothesis that auditors with deeper pocket have higher audit quality (Dye 1993).
What does deep pockets mean in business?
1 : a person or an organization having substantial financial resources. 2 deep pockets plural : substantial financial resources a corporation with deep pockets.
What is the deep pocket theory?
Deep pocket is a concept often used in the law and economics of tort law. It refers to the idea that the risk of an activity should be borne by a person who is in a relatively good position to handle it. In 2014, the Supreme Court of Iowa labeled such legal theories deep pocket jurisprudence.
Who is the father of auditing?
While some of the audit technique underlying internal auditing is derived from management consulting and public accounting professions, the theory of internal auditing was conceived primarily by Lawrence Sawyer (1911-2002), often referred to as “the father of modern internal auditing”; and the current philosophy,…
What factors affect audit quality?
Several determinants, both internal and external, can affect audit quality, including auditor professional knowledge and skills; skepticism; standards compliance; working conditions; audit duration and quality control.
What are the major influences that have affected the development of auditing?
Hameed, [1995] found that the most important factors that affect auditing quality are auditor’s experience, honesty, and the knowledge in accounting and auditing standards.
What are examples of deep pockets?
COMMON If a person or organization has deep pockets, they have a lot of money. The church will do anything to avoid scandal — and everyone knows it has deep pockets. Note: You can also talk about people or organizations with deep pockets or use deep pockets on its own with the same meaning.
Which is better deep pocketed or ultra light?
Ultra-Light Build reduces the weight by 6.4 pounds. Deep Pocketed increases the weight by 0.8 pounds, but adds 20 carry capacity, for a net gain of 19.2 pounds. So, clearly, pocketed is much better for carry capacity in this case.
What rule is referred to as the deep pocket rule?
n.— «The common law rule of joint and several liability makes each defendant in a tort lawsuit liable for the entire amount of plaintiff’s damages. The rule is sometimes called the “deep pocket” rule.
Is there a deep pocket bias in the tort system?
Despite the widespread belief that deep-pocket, biases are pervasive in the tort system, our research thus far has failed to provide conclusive evidence that they exist, and we even see some contrary evidence.
Who is the mother of accounting?
1447 – 19 June 1517) was an Italian mathematician, Franciscan friar, collaborator with Leonardo da Vinci, and an early contributor to the field now known as accounting….
| Luca Pacioli | |
|---|---|
| Citizenship | Florentine |
| Occupation | Friar, mathematician, writer |
| Known for | Summa de arithmetica, Divina proportione, double-entry bookkeeping |
What is the ‘deep pocket theory’ in audit?
The so-called ‘deep-pockets’ theory in relation to alleged audit failures, refers to: the auditor being the only party left with sufficient funds to indemnify the plaintiff’s losses.
What is deep pocket theory and its legal essentials?
This is an exhaustive article which deals with the topic of Deep Pocket Theory and its legal essentials. What is Deep Pocket Theory? The deep pocket theory has originated from the American slang word which means “extensive financial wealth and resources”.
What does big companies with deep pockets mean?
It is usually used in reference to big companies or organizations (ex: the American tobacco companies have “deep pockets”), although it can be used in reference to wealthy individuals (e.g., Bill Gates, Warren Buffett ).
What is the deep pocket in a lawsuit?
In the context of a lawsuit, the deep pocket is often the target defendant, even when the true (moral) culpability is with another party because the deep pocket has money to pay a verdict. For example, a lawyer may comment that he or she sued the manufacturer of a product rather than the seller because it is the deep pocket,…
