The Doctrine Of Liability Fixation Of Accountants To Audit The Legal Responsibility

As free "Economic police" in market economy, CPA plays an important role in upholding the security of flowing of social capitals. However, in west countries, the cases about accusing CPA accumulated rapidly from the middle of 1960s, someone even called that the CPA profession entered the era of "Litigation Explosion". In China, CPA was involved into litigation more and more after the middle of 1990s, especially after the "Yin Guang Xia case" in 2001. Facing the strict environment, theoretical research on CPA's Auditing Legal Liability became very pertinent. Due to the "Expectation Gap" exists in the area of audit's function between professional lawyers, public and professional accountants, a hot issue between professional lawyers and professional accountants became that how the CPA should assume the damage of the account book's users. In fact, the definitive principles of CPA's auditing legal liability are the question of how to distribute the risk impartially and rationally in capital market. This question need give attention to the system value and internal limitation of CPA's professional activities. Keep to the principle of interest balance, this dissertation introduces the legislation and practice in foreign countries, and analyses the cognizance of CPA's auditing fault and the definitive principles of CPA's auditing legal liability. Finally, this dissertation focuses on the problem, which has been argued for long in the whole world, that where strict compliance with the requirement under the legal system of information disclosure could be used as defense against lawsuit by CPA.