Case from the audit liability cases CPA CPA by fdjerue7eeu


									Case from the audit liability cases CPA CPA

 CPA audit liability cases
 certified public accountant's legal liability, the legal profession and the West
Certified Public Accountant pains of the past century problem in terms of today's
Chinese stock market is a new topic.

  for some accounting firms have recently listed companies in the implementation of
the audit business was widely accused of public opinion is not "responsible", and to
help the investors to have a perceptual knowledge, I am from LI If Professor Hill
compiled the follow-up educational materials industry "audit cases - foreign audit
litigation cases," a book of some selected case studies. However, different national
conditions, the majority of investors have not completely copied, in actual cases need
to be judged according to specific circumstances. Retail giant accounting firm with
Taqiluosi transaction

 giant retail companies in the United States, a large retail discount stores, is a listed
company. As the pressure of competition, the company's accounts payable, sales
return and refund the difference between the purchase price, the fraud will occur in
1971, 250 million operating loss of 150 million dollars distorting earnings. The audit
of the company's Taqiluosi Certified Public Accountants of the partner succumbed to
customer pressure because, under the control of the company's inquiry with the
relevant units to implement the audit process is not effective; the company's proposed
change audit partners will be someone out of office assistant auditors and other
unreasonable demands "compromises"; on the audit found the company, Assistant
suspected fraud left unchecked. Moreover, when Taqiluosi accounting firm to discuss
with the giant retail company audits found the problem, the giant retail companies
calculate the officers face a variety of financial indicators in order to achieve the
desired objectives can accept as Taqiluosi adjust the views of the accounting firm.

  1972 年 giant retail company to the United States Securities and Exchange
Commission submitted a 1971 annual financial statements and Taqiluosi accounting
firm issued an unqualified audit opinion, applied for and been approved to issue 300
million ordinary shares also gained 12 million U.S. dollars in loans. However, the
company suddenly announced in 1973: Because of the potential accounting errors that
may affect the annual report 1971 earnings. About a month to 后 塔 奇 罗 斯
accounting firm withdrew the unqualified opinion on the audit report. August 1973
giant retail company to submit to the bankruptcy court in Boston, two years after the
court to declare bankruptcy, the company concerned is found guilty. U.S. Securities
and Exchange Commission, after investigation, severely condemned the Taqiluosi
accounting firm, and deal with the matter before the Federal Court to suspend the
giant retailer is responsible for the audit partner Zhiye 5 months. U.S. Securities and
Exchange Commission also asked the independent expert in one juror, the accounting
firm's audit procedures Taqiluosi conduct a large-scale inspection, including the firm's
independence and how to accept the engagement, retain customers and so on. Cardillo
Travel Systems Audit Case

  Cardillo Travel Systems, Inc. in the United States has the fourth largest travel agency,
is also the first stock listed in the U.S. travel agents. Taqiluosi accounting firm audit
Cardillo Travel Systems, Inc. in 1985, found that annual accounting statements, the
company confirmed that United Airlines from the sum of 200,000 U.S. dollars for
"tourism commission income," there is doubt. United Airlines through understanding,
the money is an advance payment, which aims only to make up for the scheduled
replacement of the new system occurred in the cost of installation settings. As
Taqiluosi accounting firm partners insist that the money can not be recognized as
income, there is no compromise, no audit reports issued, Cardillo Travel Systems, the
ultimate dismissal of the firm, and refused their pay the audit fee.
  into a debt crisis because, in May 1987, Cardillo Travel Systems, a major creditor of
the company's proposed mandatory bankruptcy proceedings, the same year the United
States Securities and Exchange Commission issued a report of the company, the
company identified the personnel in violation of the relevant provisions of the federal
securities laws, including failure to maintain proper financial records. And because
Taqiluosi accounting firm during the audit complied with auditing standards and the
professional ethics, and ultimately eliminating the bankruptcy litigants to prosecute
and punish the Securities and Exchange Commission.

 in the above-mentioned two cases of this Taqiluosi accounting firm (ToucheRoss,
referred to as TR) in 1989 and 德 洛 伊 特 哈 Skins - Sells Certified Public
Accountants ( DeloitteHaskinsSells, referred to as DHS) merged with the Japan Song
OMV corporate (Tohmatsu) combined to form Deloitte Touche Tohmatsu
(DeloitteToucheTohmatsu, referred to as DTT). Arthur Andersen audit report on the
reservations for improper use of

  well-known by the international investment community who 士贝克科恩 Crawford
founded mutual fund management company is a company funds, by raising idle funds,
and securities and industrial investment. The Guinness Book of Resources to
fraudulent mutual fund management companies to sell a large number of poor quality
at high prices of oil and natural gas and other natural resources industries, and
interesting is Arthur Andersen accounting firm also audited the mutual fund
management companies as well as the Guinness Book of Resources. As co-fund
management companies need every day for all of the investment projects valued to
Queding net Zichan value per share (Leisiqiyue Xing fund of funds Danwei net), Er
Shi Wusuo Arthur Andersen accountants did not grasp the Ziranziyuan on Zishen
Chanyeshengzhi In the 1969 annual audit report with reservations to be an evasive

 fall in stock price and the purchase of inferior natural resources industries, and make
mutual fund management companies fell into bankruptcy, triggering a large-scale civil
litigation, which is one of the main defendants Arthur Andersen accounting services
by. As the Arthur Andersen accounting firm court careless disregard of the facts, can
be presumed to have an intentional crime of motive (ie the presumption of fraud). The
Arthur Andersen accounting firm for mutual fund management companies on the
1969 annual financial statements audit report issued by the reservation, court
judgments: the audit report reservations "can not quickly enough, nor enough to
completely avoid the common fund management company's economic interests of
substantial damage. " Arthur Andersen accounting firm was sentenced to the mutual
fund management company bankruptcy trustee to pay compensation 70.79 million
U.S. dollars. This was the accounting firm in U.S. history was sentenced to a
maximum amount of compensation, the court's decision is not based simply on the
number of times the audit fees to calculate, but according to the audit report to
calculate the user's actual loss, the most shareholders finally got to make up for the
  reservation audit report as an audit report for specific purposes, such as certified
public accountants in the audit process in some non-important limitations due to
certain conditions, or due to objective reasons can not be used to judge its A qualified
audit report. And failure to report, or would like to evade responsibility by not
position, is entirely different. In particular, a number of major transactions, if the
conditions are restricted and can not investigate, you can not use the qualified audit
report, so as not to mislead users of audit reports. Since in this case, the Arthur
Andersen accounting firm audit report attempts to reservations to avoid conflicts, not
to some of the more sensitive the 重大 transactions Gong Bu Yu Chung, Yi Wei by
Zheyifangshi, you can not Zuike Hu, Fu they do not have responsibility in an attempt
to kill two birds. However, this approach against the use of the audit report is
ultimately cost them more painful price.
  both at home and abroad, almost every case the occurrence of a major audit will of
the CPA profession and even decisive role on the securities market, it is not vertical
tour worthwhile, precisely defined the liability of certified public accountants to
maintain the current Certified Public Accountant credibility and regulate the securities
market order is very necessary. / Center>

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