China Certified Public Accountants Professional Liability Insurance Study

From 2002 due to a well-known accounting firm Arthur Andersen audit failure has been forced to declare bankruptcy, even though the countries accounting firm based on the lesson cautious, the audit of the scandal show increasing trend. In recent years, countries around the world frequent audit failure case against the accounting firm of the dramatic increase in litigation, how to effectively decentralized audit risk, and ensure the interests of all potential investors, has become the focus of U.S. concern.At present, there are two main methods for accounting firm to spread the risks: Provision of occupational risk fund and the purchase of Certified Public Accountants professional liability insurance. In China, since 1994 the introduction of the "Certified Public Accountant Law" Article 28 on the meanwhile referred to the risk of funds and professional liability insurance, but has given no clear relationship between the two. And at that time, China's insurance industry still has not adapted to the insurance industry, even if the firms want to insure are also nowhere to be voted. Until December 1999, China People's Insurance, Ping An Insurance to launch the two types of insurance. March 1, 2007 China's Ministry of Finance issued the "Accounting Firm occupational risk management of the Fund", which "measures" of occupational risk fund the extraction, the use of specific issues such as a clear, systematic, but approval of insurance as a career options for risk prevention. The author believes that extraction occupational risk fund and buy insurance, firms are a means of guarding against the risk of practicing, but to promote the firm to develop and protect the rights and interests of a third party's point of view, sophisticated career insurance is undoubtedly superior to venture funds.Because of China's CPA professional liability insurance implemented in a relatively short time, many insurance companies vocational insurance also only stay in form, with the industry adapt to the lack of specific provisions. Awareness of insurance firms are more weak, insurance rates and a lower sum insured. Therefore, this article attempts to occupational risks in the Fund and the Institute of Certified Public Accountants liability insurance on the basis of comparative analysis, the improvement and development of certified public accountants of the need for professional liability insurance and liability insurance through the terms of international comparisons, drawing on the experience of developed Western countries ripe , fit the national conditions of China set up a certified public accountant professional liability insurance industry.