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Research On The Legal Responsibilities Of CPAs

Posted on:2019-10-16Degree:MasterType:Thesis
Country:ChinaCandidate:X Y SongFull Text:PDF
Abstract/Summary:PDF Full Text Request
Regarded as the "economic police" in the securities market,CPA is an indispensable part of the entire social and economic activities.However,in practice,CPA did not stop the occurrence of securities fraud,but such incidents intensified even more frequently.Such an endless stream of events has brought adverse effects to the capital market and caused losses to the public participants.The recognition of the liability for public damages has always been a research difficult.Therefore,how to identify CPA's role in audit failure and how to maintain the legal rights and interests of certified public accountants and investors while strengthening the legal responsibility of CPA auditing has become an important issue to be solved urgently.In 2016,the vigorous Nine Top Group's 37 billion-yuan backdoor listing ended up as a mess with the qualitative "injection of toxic assets".However,in the process of auditing the financial statements of the Nine Top Group,the auditing agency-Reanda Certified Public Accountants lacks due professional cautiousness and fails to implement the auditing procedures in accordance with the standards of practice and issues a false auditing report to make the investors suffer huge losses loss.The occurrence of this case once again caused people to pay attention to the legal responsibility of certified public accountants.The case of this article is the inspiration point.First of all,it elaborates the background and significance of the legal responsibility of the certified public accountant.At the same time,it briefly reviews the domestic and foreign related documents and sorts out the problems related to the legal liability of the certified public accountant.Secondly,combining the tort liability theory,the principal-agent theory and the audit expectation gap theory,the theoretical analysis of the legal liability of the certified public accountant is provided,which provides the theoretical basis for the subsequent discussion.Thirdly,from the perspective of accounting firms and certified public accountants,the status quo of China's CPA legal liability is elaborated,and the reasons for the current status are further analyzed.Then,based on the analysis of the case of Nine Top Group,the CPA's legal responsibilities were sorted out from three dimensions:administrative,civil,and criminal.It was concluded that the legal system in China has problems which are lack of civil liability,the subject of liability is not properly assumed,the CPA's lack of awareness of legal risks,the lack of professional cautiousness and other issues.And then the paper analyzes the reasons for the problems.Finally,according to the problem of CPA legal liability found in the case analysis,countermeasures and enlightenments are proposed,namely,increasing administrative punishment,perfecting civil lawsuit,strengthening civil liability,and clarifying CPA individual responsibility system.
Keywords/Search Tags:Certified Public Accountant, Legal Liability, Audit Failure
PDF Full Text Request
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