The Research On Civil Liability Of False Capital Verification

Compared with the doctrine of registration on companies setting up in foreign,ourcountry take the doctrine of legal capital.The law provides for the minimum capital onestablishment of company, so it must be performed by a professional CPA toassurance the authenticity, legality of investor’s paid-up capital and related assets,liabilities, which is the basic meaning of verification. The purpose of setting aprocedure of verification is to prevent the investor’s fraud.However, due to China’scurrent audit business started late, the level of CPA are uneven.CPA breach theprocedures of verification,and he review the legality and authenticity of the registeredcapital with deliberate cheating or neglect investigation.So his behavior of makinguntrue verification report constitutes a false verification.False verification seriouslydisrupting the economic order of socialist market, and Company Law" Article208constrain such behavior. Combining with other relevant laws and jurisprudence toresearch the civil liability’s nature of false Capital, principle of responsibility,liabilitystructure, accountability and exemptions to breakthrough the legal dilemmacivil offalse capital verification.Civil liability for false verification is tort liability. CPA andstakeholders does not have direct contractual relationship,but CPA’s subjectivebehavior against the interests of creditor, shareholders and other shareholders, soCPAs should bear tort liability.Now,our country generally identified verificationresponsibilities as the verification of presumption of fault liability principle.It meansthat unless accountant can prove himself has carefully perform their duties,andimplement the necessary audit procedures.Otherwise, as long as the financialstatements contrary to reality, CPAs will presumpted at fault and he shall bear thecorresponding responsibility.In practice,the standard of reasonable care is difficult tograsp,I think that it should be considered to creat a legal obligation expert appraisalcommittee under the audit industry association committee,which specifically identifywhether the CPAs to make a high duty of care with profession.If the CPA exist thebehavior of false verification,he will response to "the unreal part of the verificationreport",and the responsibility is a added responsibility and limited responsibility.Thisresponsibility is both constraint CPAs and accounting firms,and it also provideeffective protection on the interested parties.