Research On Audit Intermediary Crime In Securities Market

Illegal and criminal behaviors occur from time to time in the developmentprocess of China's securities market. Theoretical concern in the sector focuses most onthe criminal behaviors about future listed companies and listed companies, and payslittle attention on special studies about the audit intermediary. The practice ofpunishment for audit intermediary crime in the securities market is rarely seen. Fromthe practical perspective the article conducts a research on this kind of criminalbehavior, aiming at safeguarding the order of the securities market.This first part generally describes the audit intermediary crime in the securitiesmarket. This part introduces the definition and characteristics of the audit intermediaryat first and points out the crime status quo as well as social characteristics in thesecurities market, which leads to the exploration of the necessity of criminal liability.This article holds that the audit intermediary crime in the securities market doesserious harm to the society; the offenders should assume severe criminal liability.The second part deals with how to decidethe audit intermediary crime in thesecurities market. The elements contain four aspects. First of all, the article defines theconcepts of such criminal behaviors as "document", "false document", "provide" and"significant inaccuracies". Secondly, there isa specific analysis on the subjectiveelements of intentional crime and negligence. The article believes there exist directlyand indirectly intentional crime and negligence; but over self-confidence doesn'testablish the crime. Thirdly, through the analysis on the subject element, its conclusionis that the crime could be committed by both the natural person and legal person. Fourthly, the provisions of the Penal Code about "serious circumstances" do notdirectly point at the characteristics of the securities market, thus resulting in theexistence of the application difficulties. So the article re-sets "serious cases" andprovides the practicable rules.The third part researches on some related issues about audit intermediary crimein the securities market. The first section studies from the aspect of crime patterns andthe article holds the audit intermediary crime contains such a situation as incompletionof the crime patterns. Section II introduces that if the audit intermediaries in thesecurities market make a conspiracy with other subjects, who in fact and theoreticallyconstitute an accomplice or accomplices but not in the statute, they should bepunished in accordance with their respective breach of the convicted crimes. SectionIII analyzes the number of crimes; it mainly focuses on the relation between Clause 2of Article 229 and Article 163 of the Penal Code. The author considers that theyshould be convicted and punished in accordance with the Related Offender theory.The fourth part is mainly about a comparative analysis of audit intermediarycrimes in different countries and the United States Sarbanes-Oxley Act is for ourreference. Section I introduces the regulation of audit intermediary crimes in variouscountries, finding that all countries pose severe criminal punishments withoutexception. Section II presents the audit intermediary crime about the latest change: theissuance of "the Sarbanes-Oxley Act" by the United States. The article sums up thespecific details and its significance of regulating the securities market. The thirdsection promotes that China could make a reference for whether it constitutes thecrime or not and the proper penalties, mainly from the perspective of criminal liability,conviction and sentencing. The article holds we should consider this behavior a crimeand add it to the Penal Code. At the same time, the offenders should be posed graverpunishment in the securities market.