Civil Liability Of Auditor In False Statement Of Securities

Auditors are known as the "gatekeepers" of the securities mar ket who can protect investors’ rights.Audit as an independent and authoritative social economic activity its importance is self-evident.This is because in the process of securities issuance and trading activities are carried out by auditors who sign and issue audit reports,undertake the examination of information publicly disclosed by securities,and ensure the truer,accurate and complete task of information disclosure by their clients.issuers of securities or listed companies.With the continuous development of our capital market reform.the CPA industry faces new challenges and opportunities,and how to improve its quality to adapt to the audit work under the new situation has become an important topic.On January 21,2022 the Supreme People’s Court issued the Provisions on Hearing Civil Compensation Cases concerning False Statment in the securities Market9Fashi(2022)No.2).On this basis,the audit quality management system of listed companies has been further improved,providing new ideas for the audit quality management of listed companies.Auditors’ information disclosure documents take financial information as the core content.In the environment of asymmetric information and incomplete information,investors often make wrong judgment on the Financial situation of enterprises.so as to make wrong investment decisions.Issue of audit report During the auditor once made false statements,investors and based on the investment decision,resulting in investor losses is inevitable.Therefore,auditors need to bear the corresponding responsibility to protect investors,in order to realize the auditor’s "gatekeeper" function in the securities market.This paper selects one kind of intermediarv institution in the securities market.namely auditor,and summarizes the law of judicial decision of such litigation cases by analyzing three sensational typical judicial cases in recent years.By examiningthe value contained in the securities law and civil liability for compensation,this paper constructs the cross-over analysis of law and auditand focuses on the fault,causality and scope of liability compensation related to auditorsfalse statements of civil liability for compensation.In terms ofthe establishment of tort liability,the tort of false statement of securities has its particularity,the investor’sloss is pure economic loss,the causalityis applicable to the "fraudulent market theory",the imputation principle is the presumption of fault;In terms of liability compensation,investors’ losses are mainly reflected in the impact on the quality of information diclosure and the authenticity of information disclosure in the securities market.The application of joint liabilityis explained through the analysis of civil liability bearing in cases of securities false statements.Auditors bear joint liability or proportional ioint liabilityexternally,and can recover from the issuer at fault after bearing liability internally.Firstly,from the current laws and regulations on the scope of compensation provisions,it is found that the loss is irreparable within a certainlimit,and then introduce the joint liability practice applicable rules for the proportion of securities false statements,presenting a more fair measurement standard of the liability of audit people’s affairs.