A Study On The Legal Regulation Of The False Statement To The Certified Public Accountants About The Forecast Financial Information Disclosure

In an economic environment changing times, financial information is very important for decision-making. The forecast financial information is more important, as its more in line with the decision-makers the need to judge the needs of economic forms and scientifically evaluate the financial situation of enterprises. Based on the information of corporate’s history and data, combined with the currently available information, using scientific methods to speculate the development trend of the economic situation, the forecast financial information can analysis and forecasting of future financial situation. The disclosure of the forecast financial information can help investors to make rational economic decisions, and in this way to improve the effectiveness of securities markets. However, the inherent uncertainty of the forecast financial information has increased the risk of investor decision-making. So all countries have set up audit system in the implementation of certified public accountants to force disclosure of the forecast financial of information in order to reduce stock market risk and protect investors’interests. In the proliferation of false statements and a serious distortion of the disclosure of information of the securities market, certified public accountants play a very important role as barriers to control the predictive quality of financial information. However, because our legislation in the false statement of forecast financial information and civil liability investigation is unfinished especially the lack of appropriate legal mechanisms binding of Certified Public Accountant audit, the misrepresentations of Certified Public Accountants frequently escape traditional legal regulation.In this paper, begin with the introduction of the concept of predictability of financial information, the author try to explore the standard of predictability of a false statement of financial information. Through a comparative study, and focus on the experience of other countries about the basis of the CPA to a false statement of civil liability for criminal and exemption system, the author try to propose improvement measures to our existing actual situation.This paper is divided into three parts:introduction, body and summary. With the body consists of four chapters:Chapter One Overview of the forecast financial information. Firstly, compared to the historic financial information, the forecast financial information has a special connotation, extension, and time range. This is the reason for the forecast financial information disclosed subject to special specifications. Secondly, by comparing different countries, especially the United States on the specification of the forecast financial information disclosure system, the importance and necessity of the forecast financial information disclosure has been explained. Finally, this section illustrates the motivation of the forecast financial information disclosure and the difficulty of the regulation.---which is easily lead to false statements and difficultly to monitor.Chapter Two Logical starting point---Identification of the predictability of a false statement of financial information. This chapter explores how to identify the predictability of financial information and offer identification standards, which is "Audit Truth+due professional care+the importance of the level. First, the auth summarizes the definition of a false statement of China’s legal profession by studying the legislative documents, then study the differences between two academic says on the false statement:"objective truth" and "Audit true to say".By introduction the concept of "due professional care" and "materiality standard", the author to a certain extent clear the theoretical disputes of the legal profession and the accounting profession. Finally, focusing on the particularity of the forecast financial information, the author explains the specific circumstances and scope of the authenticity standards and material standards applicable to.Chapter Three The Civil Liability of CPA on forecast financial information misrepresentation. The forecast financial information misrepresentation civil liability system is an effective system to restrict the disclosure of Certified Public Accountants information. This chapter begins from the four elements composition of the tort law---Misrepresentation, a certified public accountant of subjective fault, damage the facts and the causal relationship, discusses the constitution of predictability Civil Liability for Misrepresentation of financial information. The exemption system is the protection to the CPA who makes good obligation. Secondly, in view of the deletion of the exemption system in China, the author introduces the three safe harbor rules of the USA---175safe harbor rules, judicial safe harbor rules (Judicial Safe Harbor) and "pre-warning theory" and legislative safe harbor rules (the Statutory Safe Harbor).Chapter Four Improvement of regulatory false statement of the law of the forecast financial information. After a analysis of the status of the false statements of the predictability of financial information disclosure in our country, the author proposes the response measures of Civil Liability for false statement of forecast financial information from the following four aspects:(1) establishing an independent concept system of the forecasting information;(2) establish and improve the civil liability regimes of the Certified Public Accountants financial information on the disclosure of false statements;(3) building a practicing certified public accountant expert identification mechanism;(4) Strengthening of Certified Public Accountants practicing quality supervision mechanism.