Multiple Cases Research On The Legal Responsibilities Of CPAs

With the steady progress of registration system reform,the supervision function of certified public accountants on the quality of capital market information disclosure is becoming increasingly prominent.With the vigorous development of the audit industry,financial fraud and legal litigation of listed companies also break out frequently,which make CPAs face practicing risks.Under the background of continuously strengthening the legal liability of intermediary institutions under the Securities Law,how to effectively implement the main liability of CPA is crucial.In judicial practice,there are many disputes about the determination of CPA’s legal liability.What legal liability auditors should bear and the deficiencies in the implementation of responsibilities have become urgent problems to be studied.Based on the theory of "deep pockets",rational economic man hypothesis and audit expectation gap theory,this paper studies CPA’s legal liability by literature research,statistical analysis and case analysis.It is divided into four parts: First,sort out the definition and classification,defining principles and legal basis of the legal liability of certified public accountants.Secondly,the present situation of CPA’s legal liability in China is described and analyzed from three aspects: administrative,civil and criminal liability.Thirdly,select the cases of Shanghai DZH Limited audited by BDO Shu Lun Pan Certified Public Accountants LLP,Jiang Su Yabaite Technology CO.,LTD audited by Lianda Accounting Firm and Jiuhao Network Technology Group Co.,Ltd audited by Zhonghua Accounting Firm to conduct a specific study.Demonstrate and analyze the common problems and causes in the performance of CPA’s legal responsibility.Finally,suggestions are put forward to strengthen the legal responsibility of certified public accountants: at the level of audit subjects,prudently undertake entrusted business,strictly execute auditing standards,and improve the quality management;at the level of supervision,establish the system of regular audit rotation,promote the construction of industry integrity,and strengthen the publicity of audit responsibility;at the level of legal environment,improve the civil liability laws and supporting rules,further strict administrative penalty provisions,and do a good job of the content’s connection between the legal standards.This paper hopes to put forward suggestions on how to strengthen the legal responsibility of certified public accountants through in-depth study,so as to provide a fair and friendly professional environment for auditors while promoting the efficient and orderly development of the capital market.