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ACCA Applied Knowledge · Business and Technology · The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession

A key advantage often claimed for self-regulation of the accountancy profession, compared with direct state regulation, is that:

The usual advantage is that self-regulation draws on the specialist expertise of practising professionals, so rules are practical, relevant and can be updated flexibly. It does not guarantee compliance, remove the need for discipline, or give the public rights against the professional body.

  1. Ait guarantees that no member will ever breach ethical standards
  2. Bit removes the need for any disciplinary procedures
  3. Cit uses the specialist knowledge of practising professionals, so rules are practical and flexibleCorrect
  4. Dit gives the public legal rights to sue the professional body for members' failures

Explanation

Professionals understand the technical issues, so the rules tend to be practical and can adapt quickly. Self-regulation cannot guarantee compliance and still needs discipline. It does not give the public a right to sue the body.

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