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Study On The Compensation Responsibility Of Accounting Firms To Third Parties

Posted on:2019-05-12Degree:MasterType:Thesis
Country:ChinaCandidate:P J ZhangFull Text:PDF
GTID:2416330548483154Subject:Law
Abstract/Summary:PDF Full Text Request
There are no clear legal provisions for the accounting firm' s negligent release of false information to a third party which causes property damage.Theoretical circles are also divided.Although the Supreme Court made a series of judicial interpretations,it did not specify what kind of responsibility forms should be assumed by the accounting firm in this case.The current situation has also caused confusion for judicial practice,and the results of similar cases have been mixed.Different results of the same cases pose challenges to social order and social justice.Therefore,it is necessary to find a theoretical basis suitable for such cases.The loss caused by an accounting firm's negligence is the pure economic loss that is based on the principle of "non-compensation and compensation as exceptions".There is a close causal relationship between the omission and the consequences of such damages,and therefore the third person should be allowed to make a claim to the accounting firm.At this time,the theoretical community has joint and several liabilities for its responsibility form.There are several types of liability,joint liability,several liability,unreal joint obligation,and supplementary liability in such cases.Joint liability demands that the actors have intention liaison among them,but it does not effectively regulate the order of responsibilities.This is too strict for the accounting firm.Several liability does not have flexibility when dividing the scope of responsibility.The design of the type makes victims bear the risk of failing to recovery.The liability substitution model with unreal joint obligation is more severe for accounting firms.In a comprehensive sense,the regulatory advantages of liability and responsibility in the order of supplementary responsibility determine that it is the most appropriate application.The responsibilities of the accounting firm and the corresponding supplementary responsibilities are similar.The accounting firm' s reliance on third parties has an obligation to prevent the third party's property damage,so its negligence indicates its fault.The degree of fault and the duty of care jointly determine that it should bear the corresponding liability for its fault.At the same time,the difference between the non-infringement and the infringement determines that the accounting firm assumes only supplementary responsibility.At this point,it is also appropriate to expand the application of security protection theory in such cases.Corresponding compensation liability should take into accounting firm's degree of fault,the size of the causative potency,and the degree of being trust.In the order of responsibility,the accounting firm also assumes the part of the direct actor that can or cannot afford to adapt to its own fault due to the inferiority of the supplementary liability.In addition,in order to better balance the interests of victims and persons who have security obligation,accounting firms should enjoy the rights of recovery to direct actors after taking responsibility.
Keywords/Search Tags:accounting firm, corresponding supplementary liability, omission, right of recovery
PDF Full Text Request
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