Research On The Independent Audit’s Legal Responsibility Of CPA In China

Independence is the soul of CPA audit, so sometimes CPA audit is alsocommonly referred to independent audit. With the development of economy andsociety, CPA is playing an increasingly important role in the economic operation, thepractice level of audit has produced a significant impact for the entire economicenvironment, the legal liability of CPA has been the focus of theorists andpractitioners. Along with emergence of the audit profession litigation explosionphenomenon, the improving and perfecting for law and related regulation ofindependent audit’s law responsibility becomes imperative. In this thesis，by definingthe meaning of CPA’s Legal Responsibility, then analyses the current situation of theCPA legal liability regulation system, and emphasizes on preventive and regulatoryeffect of the mandatory legal and regulatory mechanisms. As for improving measures,this thesis takes legal elements, economic and social elements and also the charactersof audit business into consideration, considering the legalization of the constructionindustry，and makes specific recommendations to improve the relevant legal system.This paper includes three parts.The first part mainly certified the legal liabilities of CPA from the basic concepts.From analyzing the meaning of the audit legal liability and understanding the relatedproblems to discuss the define standards of the CPA from comprehensive andin-depth ways.The second part through define the legal responsibility of the audit accurately, toanalysis the led to an independent CPA audit internal and external factors of liability,on the basis of a historic and systematic analysis of our related legal regulation andsupervision system,find the weaknesses of there functions, in order to proposefeasible solutions in the following parts. The third part is mainly about the solution, which is basis on part two and partthree. In the specific comments and suggestions, not only to consider the protection ofthe principal and interest of a third person legal rights, but also stressed that thelegitimate interests of the audit legal persons and registered accountant, not only toconsider the the audit concern audit litigation remedies and penalties, but also stressedthat prevention and avoidance of liability issues. While at the level of economic andlegal differently analysis elaborated proposed improvement measures andrecommendations, making the practice and legal practice to achieve harmonization,thus forming a more systematic legal system to protect and promote the healthy andrapid development of China’s market economy.