Title: On Institutional Imperfection and Reestablishment of China's Legal Liability for CPA Auditing
Abstract: Currently there are serious fraudulent practices in our CPA concerning listed company auditing. Nevertheless, the serious institutional shortage of legal liability in punishment, which is highlighted by the definitive baselessness for legal liability, the uncertainty of prosecuting principal's legal provisions, too high a starting point of legal proceeding, the difficult determination of indemnity and the leniency in punishment. The main reasons for CPA's involvement in listed companies' fraudulent practice are the serious lack of civil compensation mechanism, imperfection of corporate governance structure, too much trade protection the defects of organizational form of limited liability in accounting firm, too much harborage by local government. Accordingly, we should establish CPA legal liability system by doing the opposite to the above mentioned reasons.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
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