| In 2002, Professor Ronen proposed a new concept– financial statement insurance .Under financial statement insurance system, listed companies no longer hire accounting firms to conduct financial statement audit, but rather purchase a kind of insurance–financial statement insurance from insurance companies. These insurance companies then will audit the listed companies and decide the insurance fee and insurance rate according to risk assessment. Additionally, loses to investors, which are caused by fraudulent or inadequate statement, should be afforded by the insurance company.This paper mainly focuses on studying financial statement insurance system through a lawful sight. Because of the unlawful existence of financial fraud, auditor independence must be improved. However, the deviation of CPA's independence in modern China is serious. Therefore, financial statement insurance system can be an effective means to solve the problem of financial fraud.Main structure and content of the paper:Part 1: Introducing the research background of financial statement insurance, according to recent cases of financial fraud and breach of duty of CPA. I point out that the Sarbanes-Oxley Act of 2002 has not improved the auditing independent character fundamentally. So I want to introduce another schedule financial statement insurance.Part 2: Introducing the principles of financial statement insurance by words and picture, which includes financial statement insurance's appearance, key proponents, insure process, types and characteristics. In this part, I point out that FSI is a kind of responsibility insurance, which is different from CPAs'responsibility insurance and directors'responsibility insurance.Part 3: analyzing the financial statement insurance through a lawful sight. financial statement insurance is a kind of liability insurance, the relationship between listed company,insurance company,and CPA is civil entrustment relationship. The main part of insurance contract is... |
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