The Research On Professional Liability Of CPA In United Kingdom

The CPA of United Kingdom carries out audit and non-audit. The ethics of two operations are opposite, which will elite the liability of CPA. The British laws legitimate that audit is more important than non-audit. And the government will partially adjust the problem. The independence of the CPA is important in the liability system. The liability entity is relevant to the forms of accountants firms. When the firm is a partnership, all the partners will assume liability, while when it is a company, the CPA will not be directly responsible for his liability. In a limited liability partnership, the partnership will assume the liability, but the faulty CPA also will assume it in some circumstances. To the principal, the professional liability is concurrence of tortious and contractual, and to the third parties, that is tortious liability. No matter what kind of liabilities, they are caused in fault. The CPA works on the basis of documents provided by principal, if the CPA operates any faulty conduct, the probable cause will be that the principal has made faults. The fault degree of the CPA affects liability share. If management staffs of principal cheat seriously, their conduct will be regarded as faults of principal or the third parties. When the CPA carries out any intentional or gross negligent conduct on this condition, he will assume joint liability with the principals and the third parties; otherwise he will assume divisional responsibility. Our country should learn the spirit of professional liability system of the CPA in United Kingdom. Perfect our system from independence of the CPA, liability entity and claimant. The trend of firm forms should be limited liability partnership, but at present, we should adopt the partnership as the main form. The claimant will include principals and foreseeable third parties.