Case Analysis On Xu Dongming V.Bounden Duty Of Certified Public Accountants Report

Since1960, as the cases accounting firms sued by the victims escalated fast, the litigation seems to be explored over one night. At that time, the famous cases such as Lan Tian Stock, Zheng Baiwen and Yin Guangsha all belongs to false statements, which are directly related to the false information of corporations’financial and accounting, to the failure of the auditing.The civil liability of accounting firms more and more the concern of civil society, employing the accounting profession into the whirlpool gradually lose credibility.How to exactly define the responsibilities of the accounting firms, especially civil liabilities towards the third part, as well as how to balance the interests between the accountants and the interests-related, which would be typically important both in theories and practices. In June2007, the highest court set up an explanation, which called Rules About Dealing with the Civil Liabilities of the Accounting Firms Audition Work, to the continuing controversial issue about the civil responsibilities of accounting firms. Based on the new provisions in this judicial explanation and the particularity of certified public accountants’practices, this article mainly stands at the angle of the integration of accounting and law to analyze some cases, and do comparative research of the home and abroad related regulations, which helps to get further in the analysis of the civil responsibilities of accounting firms towards the third part in accordance with our country’s reality.The main content of this paper is as follows:Part Ⅰ:the case presentation and a focus of controversy. Introduce the basic facts of the case on the basis of the focus of controversy of the case, the court’s verdict, which laid the premise and factual basis for the further analysis below, the main contents of this article.Part Ⅱ:a focus of controversy. Cases a focus of controversy, the part of the premise, through domestic and international theory and related legislative provisions, legal analysis, the theoretical basis for the later draw conclusions.Part Ⅲ:research findings. Combined with the legal analysis of the specific facts of the case and the previously proposed conclusions view. The definition of a third person should be combined with business classification, and practicing the purpose of differential treatment. False reporting standards, the false report, there should be false, misleading or missing and at the same time meet the materiality of these two substantial elements. Causation should be the plaintiff bears the burden of proving the existence of trust. The identification of the responsible type, in the case of negligent fault of Certified Public Accountants, shall be the responsibility types, according to the degree of fault to assume corresponding responsibilities.