The Civil Liability Of CPA To The Third Party

Ever since the litigation explosion in the 1980's, CPA's civil liability has arisen as a controversial issue in many countries. CPA's liability concerns three parties, corporation, CPA(accountant firm) and the audit report user. Therefore, the research should seek to balance between the development of CPA and the public investor protection. We are guided by the concept, this paper discusses the theoretical foundation of CPA's liability toward the third parties, liability nature, imputation principle, liability confirmation and the damages of infringement.This paper is divided into three parts.Beginning with CPA's nature, part one insists CPA to be characterized as expert and analyzes CPA's characteristics. Then it defines the third party based on the reasonable forecast and for the seen criterions in common law system. At last, according to the actual condition of our country, this paper considers the CPA's liability as tort liability.Chapter Two evaluates domestic scholar's controversy upon the doctrine of liability fixation of CPA's liability. After amending the doctrine of liability fixation of our country, this paper thought using doctrine of presumption to be appropriate.Chapter Three explores the confirmation of CPA's civil liability. At first,this paper insists the"professional care"should be used to judge whether the accountant is subjective in fault. On the confirmation of causality, we can adopt the"presumption of causality"in common law system.Chapter Four discusses the assumption of CPA's tort liability and compensation for damage. At the issue who should assume the CPA's liability, this paper argues the CPA and its accountant firm should assume the liability. Then this paper insists should distinguish intention and negligence to confirm the CPA's liability. The last issue is the compensation for damages in the liability assumption, it should follow the principle of reasonable limitation.