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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 professional accountancy body is criticised because the same committee that writes its ethical rules also investigates complaints about members, and some committee members are practising accountants. Which weakness of self-regulation does this MOST directly illustrate?

This illustrates the risk that self-regulation lacks independence, because practitioners may judge their own peers. The public may doubt that discipline is impartial, which weakens confidence in the profession. Many bodies respond by including lay members and independent oversight on disciplinary panels.

  1. APossible lack of independence and public confidence in disciplinary decisionsCorrect
  2. BExcessive cost to the government of enforcing standards
  3. CInability of the body to expel any members

Explanation

When practitioners judge their peers, the public may suspect bias or leniency, which undermines confidence. The scenario does not concern government cost, and nothing suggests the body cannot expel members.

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