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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 recognised criticism of a profession regulating itself?

The recognised criticism is conflict of interest: because members regulate their own profession, they may be lenient on colleagues and appear to protect their own interests. The other options contradict the usual benefits of self-regulation, namely expertise, flexibility and lower cost to the taxpayer.

  1. AConflict of interest, as members may be reluctant to discipline colleagues strictlyCorrect
  2. BThe profession lacks the expertise to set standards
  3. CRules cannot be updated quickly
  4. DIt always costs the taxpayer more than state regulation

Explanation

The key criticism is perceived lack of independence: the regulators are members, so they may protect the profession's interests and be lenient. Self-regulation usually benefits from expertise, flexibility and lower public cost, so the other statements are the opposite of the usual position.

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