Font Size: a A A

Certified Public Accountants' Liability To Third Parties

Posted on:2005-07-21Degree:MasterType:Thesis
Country:ChinaCandidate:Q X GeFull Text:PDF
Abstract/Summary:PDF Full Text Request
Certified Public Accountants' (CPAs') liability is a hot and difficult problem both in accountancy field and law field in western countries, especially the CPAs' liability to third parties. Combined the theory with practice in our country, the author makes systematic research and statements on CPAs' liability to the third parties. The thesis is divided into 4 parts, having more than 40,000 words totally . The points are as follows:In the first part, The author starts from making the definition of the audit failure. Basing on this definition, the author points out what we can learn from abroad after investigating the appellative cause of the third party and introducing the United States' demarcation of the third party. Secondly, the author analyzes special characters of the third party's liability and probes the abroad concerning third parties' liability of CPA for audit failure. Combined with China's actual condition, the author makes the conclusion that the nature of CPAs' liability to third parties should be regarded as tort in order to protect the benefits of the third party for the better.The standard of duty and constitutive requirements are discussed in the second part. The author attributes the standard of duty to the fault theory on the emphasis of analyzing CPAs' liability to third parties. Besides, the author particularly stresses toapply the special method - the fault predict because of professional charactersof CPAs'. Applying the method of CPA fault predict absolute duty of proof that third parties offering, on one hand, it's beneficial to the third party, on the other hand itadmits CPA to offer the contradictory proof so as to dismiss his liability if he has no faults. This principle is available for both parties to uphold their legal rights. From the lawmaking and judicatory practice of our country, the author thinks that the CPAs' liability to third parties' constitutive elements include issuing false reports, harmful consequences, causalities, and subjective faults. Meanwhile every element is analyzed deeply. In addition, the author proposes the review standard and reviewer of false audit reports, bring up the fault standard review. In consideration of the third party difficulties offering proof about causalities, the author draws lessons from the United States stocks "reliance on predict" and "cheating market theories" to prove causalities. Defense causes are also dissected at last.The duty of indemnity, scope, calculation of indemnity and the duty undertaking are brought up in the third part. The author deems that the duty of indemnity should be the accounting firm, and its liability should be comparison rather than joint liability in general. The accounting firm has the rights to require CPA's compensation when CPA issues false reports at intention or with serious faults.Finally, the author points out shortage of related law and judicatory explanation in our country and brings up suggestion for modification.
Keywords/Search Tags:Certified Public Accountant, Third parties, Tort
PDF Full Text Request
Related items