A Normative Analysis Of Legal Responsibility In The Text Of Accounting Law

Along with the increasingly mature development of the socialist market economicsystem and the capital market, accounting legal liability system has taken an essentialrole in accounting legal system as well as it has gradually been involved with all thefields of economic activities. From its history, accounting legal liability not onlydominated social and economic development, but also reflected basic requirements ofconstructing a country’s economic relationship directly or indirectly. In US, a great dealof accounting detecting-fraud cases, for example, Enron, Xerox and WorldCommunication and so on, has been detrimental to global accounting industries andharm to the whole world. However, in China, management might use of financing andaccounting to manipulate profit distribution wantonly, for negative factors, like unsoundcorporate governance and accountability mechanism, unreasonable system, and lack ofspirit contract, ect. With the discovery of Zheng Baiwen, Yin GuangXia, Red LightIndustry, Yi An Technology and Orient Electronics, investors, especially medium andsmall investors, are hit so hardly that they cannot compete with large companies or bigaccounting firms. In this situation, lacking of rational thinking, people tend to protectthe profit of investors, resulting in exceptions gap between how accountingprofessionals perceive themselves and the exception of the public. Today, the problemof accounting legal responsibility is no longer the marginal question in the study of theaccounting profession system construction, it has become about the accountingprofession survival and the development principle, fundamental problems.The Accounting Law of The People s Republic of China is a basic and speciallaw to regulate and adjust the accounting behavior norm and subject relationship. Byinheriting the constitution, enlightening the accounting laws and regulations, it hasplayed a great role in controlling the accounting law system construction andcoordinating the accounting law regulation since its enforcement about20years ago.However, compared with those Western capitalist countries that have a relatively soundaccounting legal responsibility system, we still have a large gap in the extent of thesystem regulation and effectiveness of the norm feasibility. This kind of gap directlyrestricts the flourishing and healthy development of our country s accounting profession.Currently, our country s accounting legal law system is in the crucial stage of wholetransition reform. It s the lack of scientific legislative guidelines and wholesome legalenforcement regulation that lead to the rises of the above accounting fraud cases in recent years. In fact, in the middle of the1990s, our country began the reform ofaccounting legal regulation, which focused on promoting the accounting norm in accordwith international practices. Meantime, quite a few scholars suggested formulatingcorresponding conceptual framework of financial accounting legal liability, and tried tolay the steady theoretical foundation for regularizing relative accounting legal liabilityconcept.Based on what mentioned above, this thesis adopted the method of text analyzing,conducted research on the text of the Accounting Law, in which, legal liability isviewed as an organic whole, and the characters, words, and sentences are used to findout the real meaning and legal means of legal liability in a text. Apart fromintroduction and conclusion, this thesis consists of four parts. In the first part, itdescribed a brief summary of the development and reform of china s accounting liabilitysystem to give you some information about its background. Moreover, some basicresearch methods in jurisprudence and economics of law are also adopted to helpanalyze the essential connotation of accounting liability, thus making a scientificinduction and definition of the constituent elements of the accounting liability, the maincontents. In the second part, through the comparative analysis about separation ofownership and the concept and manifestations of entrusted economic responsibility, theconcept of ownership, the right to operate is clarified as well as the interdependencebetween accounting and fiduciary economic responsibility. At the same time, the authorgeneralizes the main reasons of accounts legal ability, based on the current economicenvironment. In the third part, the author uses comparative analysis to analyze the basicstructure of the text of the Accounting Law and to discuss the flaws and limits of thechapter named legal ability in the text of the current accounting law. In the last part,from legislation, justification and law enforcement, the author combines other texts ofaccounting laws, like Constitution, Civil Law and Criminal Law, to find main problemsof accountant legal liability existing in juridical practice and comes up with somelegislative proposals for revising and perfecting of system of legal liability in theaccounting law text.