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Certified Public Accountant's Legal Responsibility Based On Investor Perspective

Posted on:2020-11-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y LiuFull Text:PDF
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At this year's National People's Congress and Chinese People's Political Consultative Conference,Xiao Gang,a member of the National Committee of the Chinese People's Political Consultative Conference and the former chairman of the China Securities Regulatory Commission,clearly pointed out that it is necessary to vigorously protect the legitimate rights and interests of investors and severely punish those who violate laws and regulations,thereby increasing their illegal costs.Because with the rapid development of the securities market,more and more investors are pouring into the securities market in order to obtain income.In theory,investors will make decisions by analyzing the financial statements disclosed by the company,so the authenticity of the financial statements is especially important for investors.However,in recent years,the financial frauds such as Great Wisdom,Zhejiang Jiuhao,and Dengyun Shares have caused investors to be worried.Among them,the CPA also has the responsibility to be excused.In order to better protect investors' right to know about the real financial situation of enterprises,it is of great significance to study the legal responsibility of CPAs in China from the standpoint of investors.On the basis of expounding the theory related to CPA,the article briefly introduces the form and punishment standards of CPA's legal liability in China,and then discusses the current situation and reasons of CPA's legal liability in China.According to its administrative punishment,it is repeatedly prohibited and the same.Improper auditing behavior has been repeatedly punished.The civil and criminal liability of China's CPAs is relatively low in foreign countries.Based on the unique perspective of protecting the interests of investors,China's current penalties for improper auditing of CPAs are not in place.Then enumerate the legal responsibilities of the Certified Public Accountants in the United States,the United States and Japan,and compare the legal responsibilities of the CPAs in China with foreign countries,and learn from the mature experience and regulations of foreign countries.In the end,from the perspective of protecting investors,the following conclusions are drawn: In order to protect the interests of investors,CPAs should be severely punished.At the same time,based on the nature behind the behavior,this paper further subdivides the improper auditing behavior of CPAs,corresponding to different forms of legal liability,and summarizes the matrix map for reference.In the case study,the author analyzes the improper audit behavior of certified public accountants in the case of Zhenlong special product audit failure,and illustrates the improper audit behavior of CPA and its corresponding legal responsibility.Subsequently,the author summarizes the previous recommendations on the CPA legal liability research,and based on this,the author's suggestion: The author believes that the recommendations mentioned in the existing research,such as improving the professional competence and independence of CPA,Strengthening the quality control of accounting firms cannot fundamentally eliminate the improper auditing behavior of CPAs.From the assumption of a rational economic man,interest is the fundamental motivation for CPAs to take risks.Based on this,through the heavy punishment of external supervision,even the over-correction,the cost of violation is greater than the violation of the benefits,so that the CPA will consciously diligently fulfill the responsibility,and ultimately achieve the purpose of protecting investors.
Keywords/Search Tags:Certified Public Accountant, Audit Failure, Legal Liability
PDF Full Text Request
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