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Research On The Civil Liability For False Statement In Audit Report By Accounting Firm

Posted on:2021-04-23Degree:MasterType:Thesis
Country:ChinaCandidate:H H JiangFull Text:PDF
GTID:2416330629488352Subject:Law
Abstract/Summary:PDF Full Text Request
Certified public accountants are supposed to play the role of "economic police" in the securities market where fraud cases occur frequently.However,due to the imperfect legal liability system and the low risk cost,they can not only fail to meet investors' expectations,but even become the "accomplices" of listed companies' false statements in some cases.The forms of legal liability for false statements in audit reports include administrative liability,criminal liability and civil liability.In judicial practice,the conditions for criminal judgment are very strict.The liability of the infringer is usually investigated with administrative penalty,but civil compensation is rarely involved.However,since administrative and criminal responsibilities focus on punishment,investors can only seek economic compensation through civil actions.Therefore,it is very important to build a legal liability system with civil liability as the main body.This paper summarizes and compares the theories of false statements in audit reports of accounting firms at home and abroad in two parts.The first part is the concept description of false statements and the definition,nature and development of civil liability,including the subject of liability,objective standards,methods,scope and reasons.The second part is the introduction of the four constituent elements,the measurement and apportionment of civil compensation and the provisions of legal procedure.Then by combining China's relevant laws and regulations as well as no suit net false statement civil compensation judgment in 2010-2018 and 2010-2019,the China Securities Regulatory Commission in administrative punishment announcement data statistics analysis,can be found: coordination and supporting in legislation in our country is not enough,important problems such as fault imputation principle,decided that no agreement to know;The scope of the third party is unclear and the imputation principle is single,which cannot meet the requirements of the diversity of audit procedures and different fault degrees of imputation.Causality is absolute,and the current situation of the securities market does not have the conditions to copy foreign theories;The system of civil compensation protection lags behind,and it is difficult forinvestors to get practical legal support.In judicial practice,the setup of pre-procedure makes the investors seeking civil remedy limited,and many infringers become the "fish escaping from the net".The responsibility of "attaching great importance to teachers" has more disadvantages than advantages,which makes certified public accountants ignore the importance of themselves in audit work.In the legal accountability,"administration is more important than civil",and civil liability is not paid enough attention by regulators and investors.The lack of operability of the guarantee system leads to the difficulty in the full implementation of compensation.In view of the current situation of many deficiencies,the proposal from the legislative,judicial two aspects of improvement.In the aspect of legislation,the key point is to coordinate the contradiction and make up the gap,which is to define the scope of the third party and establish the principle of multiple imputation on this basis.According to the degree of fault to distinguish the causal judgment,according to China's development situation to find out the best way to balance the stakeholders;Strengthen the communication between the accounting and legal circles,and establish supporting systems on the basis of affirms the legal status of independent Auditing Standards,so as to avoid the embarrassing situation of "there are standards that are difficult to use and no laws to follow" in case trial;Establish and improve the civil compensation protection system to effectively protect investors' right to recover losses.In the aspect of judicial relief and compensation standard: replacing the pre-procedure gradually,realizing the full right of prosecution "without conditions" to ensure the unimpeded way of civil relief for investors;Share the responsibility of accounting firms and other subjects for false statements and attach importance to individual accountability;By comparing the performance costs of different liability bearing methods,it can be seen that the reconstruction of the liability recovery method,which focuses on civil liability and gives priority to civil compensation,is the optimal solution to protect the rights and interests of investors.
Keywords/Search Tags:Accounting firm, False statements, Civil compensation
PDF Full Text Request
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