Research On Auditor’s Civil Liability In The Fraudulent Issuance Of Bonds Of Wuyang

As "economic police" in the securities market,the auditor industry can be said to be an integral part of the whole securities market supervision system,there is no doubt that the securities market "fair,just and open" requires the auditor to supervise,investors and other stakeholders is the use of the auditing reports issued by the auditor to evaluate the financial condition of enterprises,so as to make their investment decisions.However,in recent years,the financial fraud cases constantly exposed make auditors frequently into the public credit risk.The public and media organizations no longer focus solely on whether companies disclose false financial information,but instead focus on the auditors who produce the company’s audit reports.Whether auditors are diligent and responsible,what role they play in the case of "financial fraud" and how much legal responsibility they should bear have gradually changed from exploring theoretical answers to practical problems that need to be solved in judicial practice.The main purpose of this study is in the public accounting firm litigation risk increasing,expanding the scope of the auditor shall bear civil liability to pay compensation,under the condition of reasonable for auditors to bear civil liability to pay compensation to provide policy advice,offer to the judge as a similar courts auditor how many civil compensation responsibility important basis,This paper provides a new research idea for perfecting the deficiency of auditor’s civil liability in China’s legal provisions,and protects the legitimate rights and interests of investors and auditors.This paper adopts the method of single case study,taking the civil compensation case of Wuyang Construction Co.,LTD.’s fraudulent bond issuance as an example(this case is the first civil compensation case of fraudulent bond issuance in China after the implementation of securities Law amendment in 2020).At present,the judicial practice of auditor’s civil liability is relatively lacking,so it has important theoretical and practical value to study and analyze it.By reading literature,this study convergence of accounting,auditing,law and other disciplines of knowledge and combined with the existing theoretical knowledge,combining the present situation and the penta-ocean bonds issued a fraud case analysis how much auditors shall bear civil liability to pay compensation,to clarify the case issuers of accounting responsibility and the auditor’s audit responsibility,the two different nature,cannot substitute mutually and pass on.Therefore,auditors should not be liable to compensate investors for losses of assets caused by the company’s operating risks.At the same time,when the subjective fault of the auditor and the determination of the causality of the damage compensation are disputed,we should make a cautious judgment to avoid expanding the scope of the auditor’s liability.This paper analyzes the possible influence of the judgment of the lawsuit on the behavior of subsequent auditors and supports the controversy of the determination of auditors’ liability.