Research On The Law Responsibilities Of The Accounting Firm’s False Audit Report

Though CPA profession in China’s development of time is not long，with theimproving the system of market economy，a large number of domestic and overseascapital enter the domestic market，and investors are increasingly high requirementswith the financial auditing of the companies。Accounting firms business expands froma single audit business to the review on behalf of the compiled financial information,management consulting, tax services, but the audit business is still the core of theaccounting firms business。Certified Public Accountant is called "economic police",and the audit report issued is directly related to the flow of funds and vital interests ofthe majority of investors。 However,in recent years,in the domestic Lam Tincase,,Yinguangxia case,Cologne case,famous U.S.nergy giant Enron and other largenumber of domestic and international financial fraud faked hindered the efficientallocation of resources and value orientation,to the emerging the CPA profession hasbrought a great deal of impact。In view of this, the Supreme people’s court from thebeginning of1996,released a series of judicial interpretation and judicialinterpretation of documents, these explanations provides a strong legal guarantee forthe standardized economic order of market。Especially,the supreme people’s courtissued by adress on the12th [2007]“on the trial of accounting firm audit activities inthe civil tort cases in the number of provision” more make explicit provisions for thefirst time after the enactment of the first judicial interpretation of controversial issues。Forwardthe economic and social development, legal changes with a lag ofnatural,with the exposure of fraud, false legal liability in accounting firms auditreport has been a controversial topic。Therefore,the thesis based on the existing legalprovisions and expert liability of CPA, In the case of give out problems, thendiscusses the relevant issues, and the thesis is divided into three parts:Part one:The case focus controversial of accounting firm false audit report.Firstly,This article lists the typical case in ten years, and discusses the typical cases happenedin recent three years. Then, prospose to the focus of controversy, laying thefoundation for the further theoretical analysis.Part two:The legal liability of accounting firms false audit reports.first of all, analyzes the focus problem of controversy:1、the proposed identification of the falsereport that lists the different standards of the legal profession and the accountingprofession。Analysis of the respective differences,and the standard should be adoptedin practice。2、the identification of the causal relationship, lists the different theories ofthe two legal systems,and our country should adopt in the causal relationship betweenstands on the position。3、the provisions of the imputation principles。Because ofspeciality and particularity of CPA, and usually with the principle of faultpresumption，and it is not the traditional “who advocate who is the burden of proof,”the fault principle and equitable Principles。4、the proposed responsibilities of expertsidentified analysis。The thesis Indicates the basic properties of the concept ofresponsibility of experts and expert responsibility, laid the foundation for later pointedout that CPA Professional Liability in Tort insufficient to lay the foundation.Secondly,the defect of the legal liability of accounting firms false audit reports.a CertifiedPublic Accountant in tort liability law as the defects the parent law can not meet thedevelopment needs of the community between the differences and conflicts,as well asa certified public accountant in the existing legal status of tort liability, Tort LiabilityAct exists on this basis.Existing Institute of CPA tort liability is not clear,and theInstitute of CPA Professional Liability defects, the instructions Experts obligations ofresponsibility and the responsibility of a third person, and stressed that the authorviewpoint experts obligation to not only attributed to accounting firms, certifiedpublic accountants should be incorporated into the Obligations in the legislative orjudicial interpretation。Finally, The CPA to the third person limited liability is notdefinedPart three:The improvement of the legal responsibility of the accounting firmfalse audit report.firstly, put forward the legal construction.1、the definition of experttort compensation terms.2、then the definition of finite liability of CPA for the thirdpeople.secondly, In the false audit report of accounting firm security system。theauthor believes that the establishment of the audit liability identification system, theintroduction of the third-party evaluation system described below focus on the needfor the introduction of the third-party evaluation system, composed of the structure and responsibility the different recoveries principle intentional and negligent.Then, toimprove the audit report interests conflict resolution mechanisms, for professionalliability insurance and occupational risks gold status quo, the author proposes toimprove measures to better protect the interests of the accounting firm. Finally, theauthor proposes to the improve accounting firm recover system.Due to the relevantaccounting laws do not require recourse system, for the existence of defects,the authorthinks that can draw the principle about law firm recover their lawyer,but accountingfirm is Unique particularity, partner of certified public accountants than the generalthe CPA should bear more risk,and accounting firm recovery should take adifference,than the recovery distinguish negligence from willful in differentsituations。...