The Role and Liability of Certified Public Accountants in terms of Corporate Governance in Taiwan

• Main Authors: Yu-Chun Shih, 施玉春
• Other Authors: Chung-Jen Fu
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/15370637737920457128

碩士 === 國立雲林科技大學 === 企業管理系碩士班 === 92 === Since 1998,there have been cases involving listed and OTC companies diverting and emptying corporate assets in Taiwan. Two years go, there were even malicious frauds of such public companies such as Huahsiang Tech and J-J Electronics，in falsifying financial statements. In 2001, over dozens of companies in the USA, such as Enron were associated with falsifying financial information. A series of such frauds in Taiwan and abroad have not only made investors question the credibility of enterprise financial information, but also led to issues concerning the role and liability of certified public accountants. In view of this situation, governments of various countries have begun to reform the CPA system, formulate and revise relevant acts and regulations. For example, in 2002, the Sarbanes-Oxley Act of 2002 was passed in the USA, including the reform of management of CPAs as well as strict requirements and regulations. Taiwan is also starting to formulate and revise the Accountant Act, e.g. adding a corporate CPA firm system and emphasizing the certification liability of certified public accountants. In terms of corporate governance, the CPA plays an import role like a bridge between the internal supervision and outside supervision. The CPA is supposed to be independent both in fact and appearance in order to protect the interests of the general public. The legal liability of the CPA in handling auditing and certification consists of administrative, civil and criminal liabilities. For years, cases involving the liability of CPAs in Taiwan have been mostly dealt with by administrative punishment. Only a few of them have been subjected to civil and criminal verdicts. However, as investors have been paying more attention to protecting themselves, the CPAs in Taiwan will definitely face stricter liability involving civil compensations. This thesis first gives an introduction to the relationship between corporate governance and certified public accountants. It then explains the role and independence of the CPAs, and finally well as makes a profound exploration into the existing CPA Act, Securities－Exchange Act and Civil Act in Taiwan with regard to the liability of CPAs.