Research On The Civil Liability Of Registered Accountants To Third Parties

With today's rapid economic development, accounting information is a link which communicates with the market economic activities in the interests of all participants. Investment, financing, management, decision-marking, and other economic activities must rely on the authenticity and reliability of accounting information. Once the accounting information is distorted, the economic losses and social impact are hard to estimate. As the authentication agent and accounting information provider, Register Accountants shoulder the social responsibility of the authentication of accounting information. Hence, Registered Accountants should not only be responsible for the relative contracts, but also the loss of the third parties due to the spread of false accounting information. However, how to define the civil liability of Registered Accountants to the third parties has been difficult to resolve in China's judicial practice. In essence, the civil liability of a Registered Accountant to a third person is related to the selection of legal value, i.e., the balance and trade-off in legal justice and social policy.The civil liability of Registered Accountants to the third parties, which covered the range, properties, liability principle, and accountability related issues were mainly discussed in this paper. In order to find the effective solutions for the civil liabilities of accountants to the third parties, the juvenile idea was proposed according to the special problem of the civil liability of Registered Accountants to the third parties in the present fast developing economic situation.This paper was divided into five chapters: in Chapter 1, the concept of "the third parties" in civil liability of Registered Accountants and characters of civil liability of Registered Accountants to the third parties were introduced through interview of the basic concepts related to Registered Accountants. The defects of legal principles on the civil liability of Registered Accountants to the third parties in our country and the method should be adopted were put forward using the comparative studying means in the Chapter 2. In the next chapter, the characters of the civil liability of Registered Accountants to the third parties were discussed and cognized using the same means. The selection and exercise of the principles of civil liability of Registered Accountants to the third parties were analyzed in details in the Chapter 4. In the last chapter the bear of civil liability of Registered Accountants to the third parties was discussed and the reformative methods were put forward according to the actual situation of our nation.The following points of view were presented in the paper:1 .The civil liability of Registered Accountants to the third parties should be kept in predictable range.2.To pursue the civil liability of Registered Accountants in tort law could better protect the interests of the third person.3." Presumed Innocent" as the imputation principle of civil liability of Registered Accountants to the third parties should be extensively applied.4.The Registered Accountants' compensation for the damages of the third person should be keep in confirmable scope, including damages of interest acquired and damages of interest expected.5.The Registered Accountants should bear the responsibility proportionally in the co-tort cases.Through this study, it's confirmed that the selection of the accountants' civil liabilities to third parties is based on the legal balancing and selection between the accountants and the public, the two different subjects of law. In the use of various principles and methods to resolve accountants' civil liability to the third parties, legal means should focus on balancing the interests of Registered Accountants' professional interests and social responsibility, which should not be too much emphasis on one aspect.