The Legal Risk And Prevention Of CPA In IPO

The legal responsibility of Certified Public Accountant is an enduring topic. Since the last century seventy’s "litigation explosion", the litigation about legal responsibility of the Certified Public Accountant occurred repeatedly. On one hand, derived from the CPA is not in accordance with the professional standards, resulting in failure of the audit; on the other hand, due to the changeful social and economic situation. In addition, the lack of effective communication with the outside also made it difficult to understand. Despite the legal proceedings occurred frequently, accountants and legal professionals can not reach agreement on the boundary of CPA’s legal responsibility, which makes CPA in a very adverse position. In June11,2007, the Supreme Court issued the latest judicial interpretation, and stipulated the legal responsibility of CPA and the identification of false audit, which applied the legal ground for our judicial practice. Through case analysis, legal norm and the theoretical analysis, this paper promoted the knowledge of law and CPA to the IPO field. It analyzed the existing problems of CPA in IPO, after discussing the character and meaning of IPO, the role of CPA, the adverse effects of false audit report to investors and public, the reasons and types of CPA’s legal responsibility, occupation responsibility of CPA. The author thought, this study had great significance in explicating the legal status of audit, defining the legal responsibility of CPA in IPO, protecting the legitimate rights and interests of registered accountant, improving the audit quality, enhancing the reputation of CPA, safeguarding the interests of investors, and realizing the development of CPA.Starting from the paper’s background and purpose, it summarized the IPO and the role of CPA, listed the legal risks of CPA in IPO, displayed the CPA’s legal liability in the process. In the last part, also is the core part of this paper, it elaborated own point of view and put forward the corresponding proposal.