The Civil Liabilities Of Accounting Firms

Since the decade of1980s, the claims to the accounting firms for their professional malpractice became more and more popular on a national wide basis. Generally speaking, the legal liabilities of the accounting firms cover the criminal, civil and administrative liabilities. However, in the juridical practice in China, the orientation of "over administrative liability and little civil liability" does exist. When the accounting firms have the problems of professional malpractice, commonly they are imposed administrative punishments by the relevant government authorities and the Institution of Certified Public Accountants. Few of them are held criminal liable, but seldom are held civil liable. The abovementioned facts have sharp contrasts to the legislatures and judicial practice of other countries. Therefore, this essay focuses on the civil liabilities of the accounting firms.This paper is divided into five parts on the civil liability of accounting firms to explore.The first part analyzes the civil liability arising CPA background and significance of civil liability,but also to study abroad on this issue a brief review; the second part of the civil liability of the accounting firm the relevant theory and literature review;at the third part, from the analysis of domestic and international civil compensation cases, we can analyzes the civil liability of accounting firms in laws and regulations, auditing industry sector, stakeholders as well as aspects of the accounting firm’s own situation and problems; at the four part, the analysis of the current situation on the civil liability of civil compensation CPA is a reason to analyze for absence; finally, the problems of our current civil liability measures put forward their own proposals, in order to be able to solve our country’s civil liability aspects of accounting firms problems,we do contribution to country.In this paper, the use of standardized research methods is emphasizing the reality of topics, focusing on practice and other characteristics.The appropriate comparison method draws on the field of law and sociology research methods, and uses a decentralized and more common term for a small case for example explanation.Taking the whole thesis into consideration, there are two major contributions:to research ideas stress the audit profession from the perspective of long-term to develop, play a dynamic role of profession, moderate intervention CPA liability system construction process; to analyze from many angles of Certified Public Accountants bear civil liability issues and reasons, has opened up new ideas for the civil liability of accounting firms to provide reasonable protection, promoting China’s judicial structured footsteps.The limitations of this thesis include restriction of the scope of topics restriction of its content. First, to coverage on CPA China civil liability is reflected in the kind of business which is not focused on the narrative, in the face of CPA business development and expansion of service objects, the above limitation obviously is not reflected on detail to study in-depth study of a point at the attitude. In order to construct with the times and in-depth nature of the CPA framework, we ask for civil liability regime system as a whole. Followed by the content of the article, it is somewhat to the limited. At last, verification audit business caused by the business or civil dispute as an academic thesis or it is necessary to carry out specific legislation, the paper capacity for space considerations and author, on the above issues were not discussed separately, it is indwelling available for future expansion and in-depth study of the subject.