Regulating the Accounting Industry
The purpose of this paper is to introduce and discuss regulation of the accounting industry, which is currently self-regulated. Is regulation necessary, and if so, why?
THE ACCOUNTING INDUSTRY
Currently, the accounting industry is a "self-regulating" industry, which means they set their own rules, and abide by them within the industry, with a minimum of outside intervention. The Financial Accounting Standards Board governs companies. The board sets the rules and applications accounting firms must follow.
Many experts feel that self-regulation is no longer working, and the Federal Government needs to place more constraints on accounting firms. "...non-regulation and deregulation of the financial industries has gotten us into this mess. Auditors are allowed to receive income both from auditing and from consulting or 'management advisory services' to the same client, the latter usually being the more lucrative relationship with more potential for growth" (Amato).
She goes on to say, "The accounting profession does not have any meaningful...
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