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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

Which of the following is a disadvantage commonly associated with self-regulation of the accountancy profession?

A common disadvantage is that the public may see the profession as protecting its own members rather than the public interest, because the body is run and funded by those it regulates. Slow parliamentary rule-making relates to statutory regulation, not self-regulation.

  1. ARules may be set slowly because they must pass through parliament
  2. BThe public may perceive that the profession protects its own members rather than the public interestCorrect
  3. CMembers lack the technical knowledge to understand the standards
  4. DStandards cannot be enforced through membership sanctions

Explanation

A common criticism is that a body funded by and run by its members may be seen as lenient on them, harming perceived independence. Option A describes statutory regulation, not self-regulation. Options C and D are contrary to how professional bodies work, since members are experts and bodies can sanction members.

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