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The Impact Of CPA Civil Liability On Audit Quality

Posted on:2022-09-23Degree:MasterType:Thesis
Country:ChinaCandidate:Y QuFull Text:PDF
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Securities in recent years,China's listed companies false statement cases gradually increased,with the rights of litigation to further expand and the securities research gradually thorough,some securities false statement case began to appear in the existence of subjective fault,certified public accountants in being audited financial information under the condition of obvious problems,involved in the audit of certified public accountants failed to keep due the suspect,not diligently,finally issue the audit report without reservations.For certified public accountants in securities misrepresentation of subjective fault,according to the Supreme People's Court in the judicial interpretation issued in 2007,think that the certified public accountants and public accounting firms shall be involved in the business to investors of the subjective fault in the tort liability,and the securities issuer shall bear joint liability to pay compensation to investors.Although China has formed a relatively complete system in terms of laws and regulations on securities false statements,China's private audit still shows relatively low audit quality.The incidence of securities false statements cases increases year by year,and accounting firms are more involved in securities false statements cases.Through the search of the lawsuit of false securities statements,it is not difficult to find that in the past ten years,Chinese investors' rights protection against false securities statements basically does not involve the CPA.Even if the CPA have subjective faults in the case,"there is a case but not a lawsuit" often occurs.The lack of effective investigation of the civil liability of certified public accountants has become an important factor for the relatively low quality of China's civil audit.In this paper,by sorting out and making statistics of securities false statement cases related to certified public accountants in the past 10 years,the author chooses Shu Lun Pan CPA Co.,Ltd as the research object.This paper studies the influence of CPA's civil liability on the quality of folk auditing through the assumption of CPA's civil liability in this case.Meanwhile,with the implementation of the newly revised Securities Law in 2019,the civil liability of certified public accountants has also undergone significant changes.The new legal environment not only brings new impetus to the capital market and audit market,but also brings new challenges.Starting from the new legal environment,this paper will study how the adjusted civil legal liability will affect the audit industry and the quality of private audit in China.Through the above research,this paper comes to the conclusion that the assumption of civil legal liability has a certain impact on the quality of folk auditing,and appropriate civil liability will effectively improve the quality of folk auditing.There are still some refinements in the relevant civil legal provisions of certified public accountants in China.At the end of the article,the corresponding countermeasures are proposed for the above problems.
Keywords/Search Tags:Certified public accountant, False statements, Civil liability, Audit quality
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