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In the recent years, many corporate scandals have taken place nationally & internationally. As investors cannot find remedies thru the corporate management, the investors will often go to the respective auditors & underwriters as they are perceived as “deep pockets”. This has consequently increased the risk exposure of the accountants. Besides, in order to protect investors, our government is aggressively pushing for amendments in Securities Exchange Act & CPA Law. The amended SEC Act & CPA Law clearly establish the joint liability of accountants when a misrepresentation exists in the auditor’s financial reports and prospectuses. In addition, in the Bill on CPA Law, a new organization structure called “Juristic-Person Accounting Firm” was set out; it is compulsory for the Juristic-Person Accounting Firms to buy Professional Liability Insurance to better protect the mandators and any other third parties. There has been little information on the Accountants’ Professional Liability Insurance, including the rates, its coverage, and its exclusions. This thesis aims to emphasize on the analysis of Accountants’ Professional Liability Insurance, it will be discussing the market and basis of professional liability insurance in Taiwan; it will also study two available Accountants’ PI policies in Taiwan for the CPAs’ consideration.
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