Research On Civil Compensation Liability Of CPA False Statement

The audit report issued by certified public accountant is the main basis for stakeholders to evaluate the company’s financial condition.But in recent years,audit failures occur frequently at home and abroad,and more and more certified public accountants are trapped in them,which leads to a crisis of public trust.The misrepresentation behavior is the main cause of audit failure,so the problem of civil compensation liability for misrepresentation by certified public accountants attracts considerable attention.In this paper,false statements and civil compensation liability of certified public accountants are studied in order to find out the problems and solutions.In addition to the introduction and conclusion,the thesis is mainly divided into four parts:One is the basic logic of CPA’s false statement and its civil compensation liability.The theories involved in civil liability for false statements mainly include principal-agent theory,efficient market hypothesis theory and fraudulent market theory.The principal-agent relationship gives birth to CPA audit,CPA misstatement behavior affects market information,and forms fraud to investors and other stakeholders.Based on the comparative analysis of the theory of tort liability and the theory of contract liability,the author believes that the civil compensation liability of CPA for false statements should be defined as tort liability.The second is the identification of civil compensation liability for false statements by certified public accountants and its practical dilemma.The civil compensation liability for false statements of certified public accountants should be identified as tort liability.The basic idea of identification is that the imputation principle should adopt the principle of presumption of fault.On this basis,the constitution of civil compensation liability for false statements of certified public accountants is explained.In terms of identifying the authenticity of audit reports and the "significance" of false statements in audit reports,the practical difficulties mainly lie in the differences in the authenticity standards of audit reports,the difficulty in determining the causality of tort liability and the difficulty in defining the scope of interested parties.The third is the CPA false statement civil compensation liability and its system limitation.Through the comparative analysis of the standards of "monism" and "dualism",it concludes that the standard of "Monism" should be adopted.By evaluating the system contents of civil liability scope,calculation method,apportionment method and compensation mode for false statements in audit reports in China and the United States,it is found that the relevant system has three limitations.That is to say,there are legislative conflicts in the provisions of the subject of liability,misunderstandings in the calculation of losses,and legal disregard for the subject of compensation is generally weak in the ability to resist risks and lack of effective compensation protection mechanism,leading to the stakeholders can not get adequate relief.The fourth is the CPA false statement civil compensation liability system improvement suggestions.Taking the relevant system of America as the reference system,closely combining with the reality of our securities market,and through unifying the authenticity standard of accounting information,the scope of interested parties is defined,so as to optimize the identification rules of civil liability for false statements of certified public accountants.The improvement of the civil compensation liability rules for false statements by certified public accountants mainly includes the unified definition of the compensation subject,the determination of the scope of damages,the establishment of a professional organization for calculating losses and the establishment of an effective compensation protection mechanism.