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China's CPA Civil Liability System Without Real Research Report

Posted on:2013-07-15Degree:MasterType:Thesis
Country:ChinaCandidate:E P QiFull Text:PDF
GTID:2266330374989910Subject:Constitution and Administrative Law
Abstract/Summary:PDF Full Text Request
CPA as the "economic policeman", theoretically is a provider as well as a user independent of financial reports. In fact regulatory authorities, the financial report providers pay audit fees, therefore the independence of CPAs is hard to ensure. Driven by interests, it is inevitable that regulatory authorities collude with the certified public accountant, issue false statements to financial reporting and audit reports and damage the interests of third parties. At present, China emphasizes on administrative penalties and criminal sanctions to the punishment of Certified Public Accountants who issued false auditing report. Civil compensation is uncommon. This shows China’s relevant laws and regulations are not perfect, not to create a deterrent effect on CPAs. However, audit risk can not be zero due to the existing audit limitations, so certified public accountants can not guarantee there is no financial misstatements because of fraud or error.If we blindly expand social responsibility and legal liability the accountant should bear, the final result may be the disappear of a social occupation. Therefore, through the joint efforts of experts, scholars from accounting and auditing profession, it is important to constantly improve the civil liability of CPAS, to make the CPA profession grow healthily, and to play the positive role of the CPA Audit in economic management. At the same time, through the practice of regulating Certified Public Accountants, we can ensure practice quality so as to effectively and economicly maintain the interests of shareholders and public investors, realizing the win-win situation. Through the analysis of China’s CPA false report status of civil liability system, this article is to identify the problems. It aims to improve the six areas covered in the civil liability regime of the false report issued by CPAS as a whole.
Keywords/Search Tags:CPA, Misrepresentation, False report, Civil liability
PDF Full Text Request
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