Researching On The Influence Of CPAs' Legal Liability Risk To Audit Quality

Enron incident, the Chinese "Yin Guang xia false", "Hu bei Li Hua" and a series of events shocking the CPA profession and the world happened, so that the independence and quality of services provided by the CPA had been questioned and the legal responsibilities of Certified Public Accountants has become the subject attracting much attention. The nature of the practice of Certified Public Accountants determine that it easily suffered lawsuit, and those who suffered from loss always want to receive compensation through the prosecution of Certified Public Accountants, so legal action has always been a major problem plaguing accounting profession in Western countries, and the legal responsibility of Certified Public Accountants has also been a topic concerned. Certified Public Accountants of liability has always been the world community of theoretical focus of the audit issues, which not only directly related to the CPA profession's own survival and development, but also affects the healthy operation of social and economic order.In light of this, this article bases on numerous research results, surrounds the risk of CPA legal liability and audit quality and other related issues, bases on strict logical relations and normative research methods, and researches on the influence of CPAs' legal liability risk to audit quality. This article is divided into five parts: The first part briefly reviewed the relevant literature at home and abroad; the second part starts with an overview of audit quality, explains the meaning and content of audit quality, the related theory of audit quality and CPA audit quality control ; The third part discusses the legal liability of CPA and the types of them, the definition of the premise and basis of CPA legal liability risk and their meaning; the fourth part reviews the case, investigation and the results of the "Deloitte Kelon case ", analyzes the factors affecting CPA legal liability risk and the results leading to the low audit quality, and concludes that it has a positive correlation between the risk of CPA legal liability and audit quality; the last part proposes a solution to strengthen the risk of CPA legal liability and improve audit quality.