高顿网校小编为您解答：What is a corporate practice?
 
　　Ans：In July 1995 the Professional Accountants (Amendment) Ordinance 1995 and the Companies (Amendment) (No. 2) Ordinance 1995 were passed to enable CPA practices in Hong Kong to practise as limited companies and partnerships. These laws became effective on 2 August 1996.
 
　　Before the introduction of this legislation, auditors must practise as sole practitioners or in partnerships and their liability is unlimited and is joint and several, i.e. each partner of a CPA firm named in a law suit is exposed to full liability for all assessed damages in a negligence claim, regardless of the degree of fault. A negligence claim does not therefore only affect the partner who is responsible for the audit work in question, it also affects those partners who are not personally involved or negligent.
 
　　With the enactment of the legislation enabling CPAs to practise as limited companies, the personal assets of the auditors who are not personally negligent will be protected from unsatisfied negligence claims against the practice. However, incorporation may not limit the liability of an auditor arising from his own professional negligence.
 
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