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Certified Public Accountants On The Civil Liability Of A Third Person

Posted on:2008-07-19Degree:MasterType:Thesis
Country:ChinaCandidate:T Z PanFull Text:PDF
GTID:2206360215473145Subject:Law
Abstract/Summary:PDF Full Text Request
Audit reports by certified public accountants generally concems threeparties, namely, certified public accountant and its accounting firm (short forCPA, including accounting firm), trustor, audit report user who is not trustor(usually called the third party). Based on the contract of mandate relationship,the compersation liability between CPA and trustorsis relatively clear. On thecontrary, how to compensate for the losses of the third party incurred due to theerror of CPA is at issue, can't be reached a consensus in the accounting circlesand legal circles, and also has no relevant provisions by law. For theabove-mentioned reasons, it causes difficulties and confusions in judicialpractices leading to inadequate protection or relief on the third party's lawfulrights. With the increasing malpractice cases by CPA in recent years. China'scarrent civil liability system of CPA for the third party urgently needs to beaddressed and perfected owing to its defects.This article centers on the civil liability of CPA for the third party. Byanalyzing the legal characteristics of CPA plus its speciality of expert duty of careduring practicing, and considering the legislative practices and views of differentsides abroad with a comparative approach, this article systematically delves intodetailed questions the CPA's civil liability for the third party. Finally, guided bythe method of balancing the CPA's rights and duties, this article sets forth itsanswers in this regard.Part One illuminates such basic questions as legal elements of CPA, itsspecial expert duty of care while practicing, and concept of third party and thethird party's scope. This part serves as the preclude to probing the detailedquestions of the CPA's civil liability for the third party system.Part Two deals with the legal nature of CPA's civil liability for the thirdparty. By the introduction of major doctrines and views of the academic circlesand comparisions of them, the author concludes that the legal nature of CPA'scivil liability for the third party is tortious liability.Part Three attaches great importance to the doctrine of liability fixation ofCPA's civil liability for the third party, the determination criteria of CPA's practicing faults and scope, and the set-up of proof when application of theliability fixation doctrine. This part dissects in the accounting circles and legalcircles in consideration of the achievements of legislative practices overseas,putting forward what China should do on fixation of liability : doctrine of liabilityfor wrongs with reversed burden of proof.Part Four anatomizes the constitutive requirements and grounds forexemption of CPA's liability for the third party, paying more attention to thedetermination criteria of false authentication. The author reaches the followingconclusions: the constitutive requirements of CPA's civil liability for the thirdparty including false authentication, subjective fault, harmful result andcausality between false authentication and harmful result; the criteria of falseauthentication including two aspects, namely, the falsity, misleading oromission of the contents of audit report and seriousness (legally)of such falsity,misleading or omission. Then, the author analyses the determination criteria andscope of the subjective fault in detail.Part Five examines the current situation and defects of the system of CPA'scivil liability for the third party. Form the point of balancing the CPA's rights andduties, the author offers his opinions on the system's perfection.Lastly, based on the aforesaid analyses, the author sums up hisconclusions.
Keywords/Search Tags:certified public accountant, the third party, civil liability, the determination criteria
PDF Full Text Request
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