CPA's Civil Liability In The False Statements Of Securities Market

Ever since the 1980s, CPA civil liability has arisen as the hot issue in many countries.The lawsuits brought against the accountant firms frequently became topics of the media and the public, because they were mostly associated with well-known large companiesor plaintiffs huge sum of indemnity claims, which were embodied in the case of Enron of foreign countries and the case of Yinguangxia of our country. Simultaneously,the accountancy circle and the law circle can hardly find common issue of CPA's civil liability. Actually,the key point of research should pinpoint the balance of the interests among the corporations, CPA and users of report forms.This thesis mainly deals with CPA's civil liability towards third parties,exploring systematically the false statements to the stock market and the relationship between the CPA, liability nature, civil liability constitutions, the bear civil liability of CPA.The thesis,totaling 39,000 Chinese characters,consists of 3 chapters besides the introduction.Through analyzing the relationship of false statements and CPA,Chapter I insists CPA were most ctrtical control gate,who should bear civil liability towards third parties.This part begin with the concept of false statements and experssions, analyzed the dangers of false statements.Then further information on CPA's background and vital role in stock market.Chapterâ…¡analyzed the nature of CPA's civil liability.Firstly,this part shows the Anglo-American Law System and the Continental Law Countries's Ligislation and Judicial Practice.The Anglo-American Law System characterizes it as tort liability in erther statutory law or customary law,while the Continental Law Countries do not all characterizeit as tort liability.Chinese scholars have much controversy upon the character of CPA's civil liability.The thesis argues that CPA's civil liability towards third parties belongs to tort liability in nature.Chapterâ…¢analyzed the elements of CPA's civil liability, insists the elements of CPA's civil liability include four aspects as follows:illegal acts of CPA, the loss of third parties, the fault of CPA, identification of causality.About the assumption of CPA's civil liability.Haveing reviewed the provisions on this subject in the current legislation and judicial interpretation of our country,this thesis proposes that on providing false financial reports,wether willfully or negligently,the accountant should be held as joint tort weth client and assume joint liability towards third parties.The last issue is that the accountant firm should towards the development of partnership, to promote our accountant Industry and third parties interest better.