On Civil Liability For An Independent Audit

Civil liability of independent auditing is a legal consequence of violating contractual obligation or legal obligation in certified public accountants' practising. There are dissensions between the law circle and the account circle: Law pay great attention to justice and fairness, while accounting valued objectivism and efficacy.The article can be subdivided into four parts, the first part is about the history and practising of independent auditing. Two legal instrument may cause the auditor's civil liability, one is the audit contract, the other is the audit report.The second part is about the legal responsibility of auditors to clients. The contract between auditor and clients is a contract of bailment; It' s cause responsibility of breach. Infringing trade secret and defamation cause civil liability for wrongful acts.The third part is about the legal responsibility of auditors to third parties. It' s only a civil liability for wrongful acts. Gilding accounting statement and false certification on verification of capital may cause it . The article analysed the condition of liability, such as wrongs and causation.The forth part is about the prescription of action. When the government apparatus announce penalty decision, the aggrieved party know their right are aggressed and the longest prescription of action specific can be cut to 5 years for the characteristic, of audit.