Research Of Public Audit Liability System

"Whlie the economic more developmental, the accountant become more important."—MarxAlong with the economic development, the public audit service becomes more and more significant. As we know, it is an undisputable fact that the economy of our country has been undergoing unprecedented rapid progress in the last two decades, especially since the end of the last century. At the same time, the public audit which is also known as CPA audit, as an essential part of social audit supervision system has aroused more attention than ever before.While our public audit industry has witnessed rapid progress with our economic development, our certified public accountants have made great contributions to the development of our economy and securities business. However, with the expansion of public audit industry in the last two decades, the frequent occurrence of audit failure has brought a bad influence on this industry and our economic development at large. Therefore, the people concerned in both theoretical and practical field have spared no efforts to explore the causes and countermeasures of the failure. Among all the relative research fields, the audit liability system research is of special significance. Researchers are trying to establish systematic liability system to contain the occurrences of the audit failure.Generally speaking, audit liability consists of two parts, exterior liability and interior liability. Exterior liability includes civil liability, administrative liability and criminal liability, while interior liability refers to the distribution and implementation of responsibilities within an Public Accountants.Since the clarity of exterior liability, experts from both theoretical and practical fields have attached great emphasis on it and have made much constructive research in it. On the contrary, the interior liability is less explicit, and research in this field iscomparatively less. To compensate such insufficiency, I manage to make an attempt to touch upon this field in this dissertation.As far as I am concerned, the differentiation of liability is the start point of the research on reliability system; furthermore, it is an essential part of it. Therefore, in this dissertation I focused on how to distinguish all kinds of interior liabilities, and how to establish a comprehensive public audit reliability system by combining audit business contents and procedures. And the system of distinguish liabilities includes two parts: One is divided by business contents, I illustrate the content of liability from six points which are business take over, job assignment, supervision and review, expert consultation, employee recruitment and post education;The other is divided by business flow, I illustrate the content of liability from three stages in each audit: plan, execution and completion.In addition, because independence is the soul of CPA, so I take it as the base of liability system . In the last of article, I discusses the assurance system of public audit from four points: Check, employee's evaluation and promotion, partners' evaluation and salary, organization form of Audit Company, and take it as an important complementarity for the whole system.In my research, within the frame of basic theories of management and other subjects, I was exploring the establishment of a reasonable and comprehensive interior liability system of public audit, on basis of existing research fruits, audit business cases in and abroad and most important of all, my four-year working experience in the accountant office.