The Theory Of Certified Public Accountants Audit The Civil Liability For Infringement Of Rights

Certified Public Accountant Professional (hereinafter referred to as CPAP) was created because of internal need of the market economy, and vice versa contributes to the market economy. Functioned as the inspector of financial information, CPAP plays an irreplaceable and unique role in the areas of capital market, investment and financing, corporate M&A. Audit Reports issued by accounting firms serve as important references for shareholders, investors, creditors and other interested parties while they are making key investment decisions. Audit scandals frequently reported at home or abroad highlighted the necessity of regulation of auditing civil liability of the accounting firms, meanwhile, researches on legal liabilities which audit failures shall undertake are always one of hot topics of civil and commercial law. In the light of national and international legislation practices, because of the expectation gap between the public and CPAP, audit civil liabilities are always being discussed in the view of interests balancing and policy evaluation between justice and efficiency. This thesis tries to illustrate that to keep a necessary public credibility level is the key to balance CPAP and the public by discussing the range of third party, components of tort liabilities and building of penalty compensation, etc.This article include five chapters.ChapterⅠof this thesis is "An overall of audit civil liabilities of accounting firms", this Chapter introduces the concept of CPA Audit, with elaboration of inception and development history of CPA at home or abroad, the author generally illustrates the state of legislation of civil liabilities of accounting firms, and the choice between contract remedy and tort remedy against third party in legal actions of CPAP.Chapter II named public credibility evaluation of accounting firms’ tort liability mechanism, starting from interdependent of market economy and CPAP, the author comparatively analyses the negative impacts which too heavy or too light legal liabilities may incur to the market economy and CPAP, meanwhile, considering existing and developing rules of CPAP and its relevant practices, the author thinks that to keep a necessary public credibility level is one of the balances between CPAP and the public in order to maintain lawful rights of audit report users and regulation of the CPAP.The topic of ChapterⅢis identification of third party under public credibility consideration. Through examination of the scope of third party in comparative perspective, and in the light of features of CPAP, the requirements of public credibility and restrictions under typical Chinese social environment and the culture of law, the author thinks that normally it is improper to define strict restriction to third party, meanwhile, the author agrees that under certain circumstances, it is necessary and practical to make reasonable restriction to the scope of third party.ChapterⅣis to analyze components of tort liabilities of accounting firms, starting from main academic theories of general components of tort liabilities, with the main standpoints of current components regarding accounting firms’tort liabilities in China, the author analyzes characters of CPA audit and examination of public credibility, etc., focusing on whether illegal behaviors may constitute independent tort component.ChapterⅤis construction of compensation mechanism, the author analyzes key reasons and institutional deficiencies of current inadequate compensation capacity, both from organization structure and establishment of compulsory protecting funds around all participants alike stock exchange market, discourses on the possibilities of enhancing compensation ability of CPAP.