Font Size: a A A

Research Of The Civic Legal Liability In The Organization Model Of CPA Firms On Both Sides Of The Strait

Posted on:2003-03-24Degree:MasterType:Thesis
Country:ChinaCandidate:R Q WengFull Text:PDF
GTID:2156360092991332Subject:Accounting
Abstract/Summary:PDF Full Text Request
To establish a well-laid and effective information revelation system for the stock market to prevent accounting information from misleading the public, falsification and missing, which would cause potential damage to investors, countries in the world are maintaining a balance between the rights and obligations of certified public accountants (CPA) to stabilize the stock market through legislation. After the occurrence of a series of accounting corruption in China and USA in recent years, both sides of the strait are amending related laws and regulations as solutions for some critical problems in the organization model of CPA firms. China adopts the general partnership system and Taiwan employs the CPA corporation system.With reference to the legislation in different countries and related literature, and in consideration of the situation on both sides of the strait, this paper suggested that the organization model of CPA firms should be an open case; i.e., to allow CPAs to choose from among partnership, partnership with limited liabilities(LLP), and CPA corporation according to their needs. Since the work of CPA relates to public interests, they should assume full social responsibilities, in order to prevent their personal interests from getting over social interests. Therefore, organization with limited liabilities is not appropriate for CPA firms. Moreover, CPAs should take on greater legal responsibility when they engage in auditing financial reports of listed and OTC companies, in order to protect the rights and benefits of the public and to improve the quality of accounting information. Hence, partnership is a suitable organization model for CPA firms from the social point of view, so that CPAs must take on unlimited liabilities. Different conditions should also be designed for CPA firms of different organization models, in order to maintain a certain balance between the rights and obligations of CPAs, CPA firms and investors.
Keywords/Search Tags:certified public accountant (CPA), organization model, partnership, CPA corporation, partnership with limited liabilities(LLP), balance of rights and obligations
PDF Full Text Request
Related items