Changes of Civil Liability Risks of Audit Institutions under the Special Representative Litigation System——Take the Kangmei fraud case as an example

Abstract

The new Securities Law proposes the concept of a special representative litigation system, increasing the efforts to protect the legitimate rights and interests of investors who are infringed upon, and the civil legal liability risks of audit institutions increase accordingly. To promote the healthy and orderly development of securities market and audit industry, this paper will take the Kangmei’s fraud case, the first case in which the special representative litigation system is applied, as the starting point, and analyze the civil legal liability of the audit institution in the case, so as to explore the changes of the civil legal liability of the audit institution under the special representative litigation system, and then put forward enlightenment and suggestions for the audit institution to achieve risk reduction.