A Discussion On The Civil Liability Of CPA To The Third Party

Referring to so many cases of fraud auditing and malpractices, it is reckoned that one of the main reasons why fraud auditing reports run amuck in the capital market is the ebbing civil liabilities of CPA and the low cost of transgressing. So as to ensure the system of disclosing information work effectively and protect the legal interests of investors, it is claimed to ask CPA to shoulder more civil liabilities to improve the quality of auditing service. But judging from the practice of the civil lawsuits referring to CPA in US, it doesn't wok out everywhere. Judicatory procedure and the rules of shouldering civil liability are just the mechanism of collocating loss ex post facto, which is limited to search for a method to solve disputes between the public and accountant professionals. In such disputes, the public is the plaintiff and the accountant professionals play the defendant role. It doesn't shift the basic framework of accountant system.However, in the system nowadays, the government and public's requirement for the CPA's independence is against the prompting framework CPA faces. It is the inherent disfigurement of the auditing system nowadays and hard to be got rid of by the professional civil liability rule for CPA. But the auditing system in companies as a inherent and stimulant method for CPA somehow corresponds to the outside inhibited legal responsibilities. Lacking the inherent stimulation, it shows the importance of the outside inhibited mechanism. Though the heavier legal liabilities can't ensure CPA behave more seriously, the refusing compensating functions of the professional liabilities doesn't work in such status quo that CPA shoulders few liabilities. It is necessary to refine the civil liabilities of CPA, especially civil liabilities'rule for the third party, which will ask CPA to shoulder reasonable responsibilities. It doesn't only offer an outside guarantee for the CPA's auditing service and improves the development of the auditing profession, in order to maintain CPA's function as an information agency in the capital market and gain a balance to effectively protect investors'interests.So this article aims to discuss the CPA's professional civil liabilities rule, especially the civil liabilities rule for the third party in the companies'auditing system, on the basis of discussing the lacking prompting mechanism in the auditing system in companies, in the means of professional liabilities. It probes into CPA's liabilities as the third party, combined with the auditing goal and the evolvement of technique measures, through analyzing on the development of the third party's rule in US and the background of social Policy. Subsequently, herein different opinions towards the standard to judge CPA's liabilities, with the inherent characteristics of the CPA's profession, the meanings of diverse principles and the function of professional liabilities, this article analyses the diverge between the opinions on the judgement standard and refines the legal station of the CPA's professionals basic rule behind the diverge, which is also called the auditing guide line. Last, with the characteristics of the fraud statement of CPA, it points out the way to judge the causal relationship between the harmful behavior and the loss and the principles of confirming and bearing the responsibilities to compensate losses. By refining CPA's liability rule as the third party, it is aimed not only to compensate victims but also to give attention to the status quo and living space in auditing field. It will help the liabilities'functions, which are guiding behaviors, preventing endangers, balancing interest and estimating moral, so as to conduce the equitable supervising system to be established.