Certified Public Accountants On The Civil Liability Of A Third Person

Referring to CPA business in the current world, it is an age of "explosion of litigation". Cases against CPA are increasing year by year. Since the resumption in 1981 of the Chinese CPA business, it has being advanced quickly. However, certain events in recent years, such as that of Yinguangxia, are arousing legal liability crisis of CPA. In China, as what is happening in Europe and America. Business of CPA is now with high risk, especially on aspect of legal liability. So, a study on the legal liability of CPA in the current period is quite important and with practical meanings. While civil liability is the focal point of legal liability of CPA, especially the third party civil liability beside an audit contract. This paper is intended to analyze the legal liability of CPA from the second point of law making.First of all, the cause and classification of legal liability of CPA are articulated. Third party and various levels of legal liability are defined. The cause of increasingly involved legal liability of CPA is also examined.Secondly, law systems-common law system and civil law system are theoretically introduced. The nature, attributing rules of civil liability of CPA to third party are described in detail.Thirdly, practice of related theory of civil liability of CPA to third party, in Germany and France with civil law system, and in U.K and USA with common law system are inspected.Finally, faith crisis and cause in current Chinese CPA business are studied. And taking Hongguang and Yinguangxia as examples, the third party in China is theoretically and practically stated. Preliminary opinions on law and policy making in China are presented.