On The Civil Liability Of Auditing Institutions In Securities False Statements

With the development of civil capital market in China,and the continuous expansion of the scale of listed companies,the number of cases related to securities misrepresentation has increased rapidly.As an important intermediary institution in the disclosure of securities market information,auditing institutions often involve civil liability in misrepresentation.However,there are still some deficiencies and ambiguities in the civil liability of audit institutions in misrepresentations,which are worth our researches and considerations.Regarding the nature of the civil liability undertaken by audit institutions,there have always been two views in the academic circles:tort liability and contractual liability,but the current mainstream view is that they should bear tort liability in securities misrepresentation.By analyzing the subjective and objective elements of the audit institution’s tort liability in the false statement,as well as the way of tort liability,this paper basically introduces and sorts out the theoretical basis of the audit institution’s civil liability.On this basis,combined with the current status of audit institutions bearing civil liability in securities misrepresentation,it can be found that there are multiple defects in the determination of Civil Liability,such as unclear standards for the definition of audit institutions’ faults,unreasonable methods and scope of audit institutions’ liability in the assumption and determination of civil liabilities,and the abolition of the pre-procedure for misrepresentation of civil compensation proceedings may cause problems such as the mixing of administrative functions and judicial functions.Combining the main theoretical research and judicial practice in China and abroad,as well as the research and analysis of several cases that have caused controversy in China in recent years,we believe that from the perspective of further clarifying the civil liability of audit institutions,it is recommended to optimize the way of distinguishing the framework of the fault degree of auditing institutions,so that the auditing institution bears the civil liability for the penalty,rather than blindly bear joint and several liability for compensation when it is at fault.From the perspective of better protecting the rights and interests of investors,it is necessary to improve the civil litigation mechanism for misrepresentation after the cancellation of the pre-litigation procedure,and establish standards and systems that match and adapt to the existing laws and regulations.Only by clarifying the responsibilities and status of audit institutions and other securities service institutions,listed companies,and investors,so that all parties are equally taken responsibility,can we promote the development of audit institutions and the audit industry,and at the same time protect the interests of investors,so as to promote the healthy development of the capital market.