The Current Situation And Countermeasures Of Domestic CPA Professional Liability Insurance

CPA is the degree with the accounting profession, with some areas of financial and audit experience through a unified national CPA examination and obtain a certificate in accordance with law, and the ability to engage in independent commissioned audit, accounting consulting, accounting services and other business. CPA professional liability insurance is an important aspect of liability insurance, the basic content is summarized as follows:the insured person during the course of practice activities, because negligence on the client and other stakeholders caused economic losses if the victims claim the insured, the insurance company liable for damages from within the agreed limits.From a global perspective, national audit failure cases occur frequently, but also a sharp increase in civil complaint CPA,, CPAs how to occupational risks for effective decentralization and transfer, has become the focus of the CPA profession and the insurance industry of common concern where professional liability insurance is an important way.Launch and promote CPA professional liability insurance, the stable development of China’s CPA industry norms perfect capital markets and even the healthy operation of the socialist markets economy are of great practical significance, it is both necessary means to disperse the CPA profession and transfer risk, but also effectively protect the legitimate operation of the capital market, is also effective measures to promote the healthy development of the national economy.China started CPA professional liability insurance is relatively late. In1999, the Chinese People’s Insurance Company formulated the "CPA professional liability insurance policy," China’s CPA created a precedent for liability insurance. July14,2000, China Ping An Insurance and Shenzhen Branch Shenzhen Institute of Certified Public Accountants signed a "CPA professional liability insurance underwriting agreement", which is the first of a specialized CPA professional liability underwriting risk policy. July20the same year, China Ping An Insurance Shanghai Branch and the Shanghai Institute of Certified Public Accountants CPA signed a professional liability insurance cooperation agreement, Ericsson, UOB, the Yangtze River and other nine local accounting firms signed on the spot about the total sum insured52million yuan of insurance contracts, becoming China’s first professional liability insurance coverage of Certified Public Accountants.From the perspective of the development status quo, CPA professional liability insurance there are still many problems. For example, legal norms, construction lags behind China’s relevant laws, the lack of civil liability compensation mechanism CPA; market operations, the organization of accounting firms are mostly limited liability, the relatively low demand for insurance; insurance technical aspects, the scope of protection relatively narrow, it is not reasonable to fix rates.CPA professional liability insurance started earlier Anglo-American and other developed countries, the market is more mature, and has accumulated a lot of experience, so the status quo CPA professional liability insurance in our country, you can learn from the experiences of developed countries on the basis of addressing the various aspects of thorny issues, thereby contributing to the promotion and play the insurance superiority.This paper is divided into five parts, each part of the main content and viewpoint as follows:The first part, from the income scale industries, accounting firms and firm size distribution personnel structure of the three aspects of the current situation of China’s CPA industry made a basic introduction, and outlines the future trends of the industry.The second part of the first CPA legal liability to make the existence of objective description and explanation of the legal basis and practical basis of its existence. Then for the CPA legal liability and responsibility principle and commitment circumstances, the classification described. Finally, according to changes in the development of global economy and the environment, revealing the reasons for expanding the liability of Certified Public Accountants and its performance.The third part, facing up to the CPA legal liability exists objectively and growing reality, analyzes the necessity and feasibility of the development and promotion of CPA professional liability insurance. After a brief review of the historical process of CPA professional liability insurance in our country, the problems of the insurers commenced a detailed in-depth discussion.The fourth part, as the representative to the United States and Britain introduced a specific operation CPA professional liability insurance and operational mechanisms developed countries, its core is the establishment of a multi-level insurance plan.The fifth part, in the face of China’s CPA professional liability insurance development challenges, fully draw the mature experience of developed countries, from the legal norms, market and insurance technical countermeasures proposed three levels.The main contribution of this paper are:(1) through crossover study of economics and law, elaborated on the basis of the main contentious issues and professional accounting, auditing, and other areas of the law, in-depth analysis of the occupational risks of Certified Public Accountants;(2) through the perspective of Insurance for liability risks CPA empathy, making China’s CPA professional liability insurance the problems more likely to be revealed, strategies to address these issues more targeted;(3) in view of the registered accountant development status and problems of the industry, combined with the basic situation of China’s economic and legal aspects of the development of the professional liability insurance of CPA made constructive comments.The main deficiency of this paper is:(1) as the direction of international insurance finance and accounting students, due to the limitations of professional fields, making my knowledge in actuarial terms is relatively weak, unable to present China’s CPA professional liability insurance rates system for in-depth study, and therefore for the existing problems in this area, I can not provide specific technical countermeasures more professional and easier to operate, and make some more general improvements only at the macro level;(2) due to space limitations article, I for our country CPA professional liability insurance problems coping strategies and measures to improve the system, there are still other important content does not add to explore, such as what way should take compulsory basic insurance for specific operations, how to use CPA opportunity to promote the conversion development of accountants professional liability insurance registration, etc. These issues need sustained attention in the future.