|題名: ||A Reconsideration of CPA’s Liability for Financial Statement Attestation and Insurance System in China|
auditor;torts;dualism;cap of liability;compulsory insurance
|上傳時間: ||2018-03-28 17:25:47 (UTC+8)|
The purpose of this article is to provide Mainland China with suggestions on its auditors’ liability insurance system, after systematically analyzing its auditors’ liability risk for financial statement fraud. For the research framework, the hypothesis is established first, and afterwards the nature of the auditor’s liability to the third party for financial statement attestation is discussed. Then, in order to clarify the potential liability risk of accountants, the study analyzes the relevant regulations, judgments, and the elements of liability of auditors. Thereafter, based on the previous findings, this research will put forward suggestions for liability insurance system of auditors in China. Due to the limited liability risk of auditors, this paper argues that the statutory cap of liability for auditors is suspicious. Not only the liability risk of auditors in China vary from that of the U.S., but also in many cases liabilities are caused because of the auditors’ intentional or gross negligen t misconduct, which will eventually lead to the exception of cap of liability. The situation will not only render policy-based accountants’ liability insurance useless, but also lead to a wasting of costs and premiums. For more detailed specifications of liability of auditors, such as mandatory insurance requirements for them and their firms, limited and secondary liability, and occupational risk fund, all again demonstrate the unbalance design and necessity of revolutions. As for recommendations, this research suggests that China should stop promoting both cap of liability and liability insurance by policy for auditors. Returning back to the demand of the market, should be a more appropriate and efficient policy before more evidence demonstrating that China shares similar legal background with the U.S. and other jurisdictions.
|關聯: ||東吳法律學報, Vol.28, No.3, pp.89-131|
|顯示於類別:||[風險管理與保險學系 ] 期刊論文|