A Study On Certified Public Accountants Liabilities Insurance

Certified Public Accountants'Liability Insurance(CPA Insurance) is one kind of Liabilities Insurance, which is a good means to disperse & transfer audit risk. Its definition is : during the course of the insurance , if clerk sue the insurant(CPA) for lossing,and the lossing is due to insurant's unsubjective neglect, the insurer will undertake some claims.There are four chapters in this dissertation.Chapter I begins with the need and the feasibility of CPA Insurance in China. The author believes, the current audit environment that accountants face to has changed dramatically; the business environment is becoming more and more complex; the globalization and the technological influence gradually tighter, accountant's criterion requests more judgement & estimation, the enterprise management authority may carry on more behaviors which relevant to financial corrupts . All these lead to more audit risk.Based on the above reason, we should introduce the CPA Insurance to disperse the audit risk. Then the author discuss the feasibility of CPA Insurance. She elaborate these issues below:the insurance principle, the liability insurance principle, the outcome of CPA's liabilities, the feasibility analysis of CPA Liabilities at the liability insurance legal point. The conclusion is drawn as follows: At the point of theory and practical view, the establishment of CPA Insurance has become possible.Chapterâ…¡is about the key factor of Liabilities Insurance.The author analyze each factor,and prepare the precondition for the construction of CPA Insurance.Chapterâ…¢analyze detailed procedure of CPA Insurance Overseas and draw instructive idea to our CPA Insurance.And the author draw the conclusion: under chinese realistic condition ,if the way has been adoptd that CPA Insurance is purchased by CPA and accounting firms of their free will, it may be put aside by them, therefore we advocate that CPA and accounting firms should purchase the basic insurance; Moreover, the difference of accounting firm scale may lead to different needs for insurance service .And different accounting firm also brings the dissimilar compensation risk. Therefore it is necessary to carry on different insurance plans to meet the demands of differentaccounting firms.Chapterâ…£propose the suggestion to consummate CPA Insurance in China. The author amend the key factor of CPA Insurance one by one and provide her own proposal to some essential factor. For example, Who should"buy the list"for CPA Insurance ? There are three viewpoints:first,CPA should pay the fees;second, accounting firms should"buy the list";third,CPA and accounting firms pay the fees together.In the author's opinion,she agree the last viewpoint and then give her comments behind.The characteristic of this thesis is: the novelty of the topic;the unique angle of view; the instructive meaning to the future.