Research On Legal Issues Of Joint And Several Liability For Securities False Statement In Accounting Firms

Under the background of the "registration system",the risk of accounting firms as auditors of financial statements in securities disclosure has gradually increased,and high compensation has emerged.The core issue is how to determine the nature of the auditor’s joint and several liability and the division of liability when the audited disclosure information is found to be misrepresented.First,in the majority tort system,the standards for which tort liability auditors should bear are not uniform;secondly,there are disputes over the scope of auditors’ application of joint and several liability.There are different trial logics on whether auditors should bear full joint and several liability or proportional liability.Proportional liability lacks theoretical basis and legal rules;thirdly,the definition of intentional,gross negligence and general negligence is ambiguous,resulting in the lack of a unified judgment standard in judicial practice.Based on the above dilemma,we introduces problems with cases,and mainly focuses on three focal issues: first,the scope of application of joint and several liability for auditors in securities misrepresentation cases;the second is whether the share of joint and several liability should be re-divided based on fault and causal power;the third is how to define the degree of fault and causal power of the auditor.In the majority tort liability system,intention and negligence are distinguished,the boundary of the auditor’s joint and several liability is clarified,and it is reasonable to discuss whether the application of proportional liability is reasonable.On this basis,define the tort liability of the auditor when there is general negligence.This article consists three chapters.The first chapter discusses the audit function of accounting firms and its special attributes,and then puts forward the practical dilemma of the application of auditors’ joint and several liability: First,in terms of behavior determination,it is discussed whether the auditor and the client constitute joint torts or separate torts when the auditor has intention or negligence;secondly,in terms of the type of liability,there is a dispute over which type of liability should be applied among joint and several liability,partial supplementary liability,and proportional joint and several liability;in terms of subjective fault,the legal norms of our country have vague provisions on whether to distinguish the subjective fault of auditors and the definition criteria;In addition,the proportional joint liability applicable in judicial practice lacks a clear legal basis and applicable rules.The second chapter discusses the rationality and suggestions of narrowing the scope of application of the auditor’s joint and several liability.On the basis of discussing the rationality of narrowing the scope of joint and several liability of auditors,the relevant considerations are clarified.First,prove the existence of causal relationship,and measure the share of responsibility in combination with causal power.Secondly,clarify the judgment standard of auditor’s subjective fault,and then clarify the scope of application of joint and several liability.The third chapter,differentiates the types of auditors’ misrepresentation tort behaviors.Distinguish intention and negligence,when the auditor is subjectively intentional or grossly negligent,it constitutes a joint tort with the client and should be jointly and severally liable for the losses of the investor;when the auditor has general negligence,it is determined that it should be within the scope of fault and the client shall undertake supplementary compensation liability.