I. Introduction In modern society, auditors in both developed and developing countries have played a vital role in enhancing the corporate governance of the companies and establishing the confidence of users of companies' financial reports, especially investors . However, in recent years, while many corporate scandals and collapses, that were associated with auditors' fraud and negligence, have been unveiled, the auditors' legal liabilities became the bone of contention in almost every country . An increasing number of …
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…Access: 16, Aug, 2004. Su, Jia xi., (2002), An uphill battle: Auditing and corporate governance reforms in China, [Online], Available: http://www.cityu.edu.hk/cityutoday/news/category /consultancy /general/n20021201_70.htm, Access: 12, Aug, 2004 Wang, K.H., 2002, Chinese Commercial Law, Oxford University Press, Vic. Wang, Xiao ya. 2004. "Analysis of the Current Economic Situation." Cai Mao Jing Ji [Finance and Trade Economics] vol. 4, p. 5. . Zhu, Qi., (2004), Auditors' risk, [Online], Available: http://www.51lw.com /article/audit /9 28.htm, Access: 10, Aug, 2004.