Skip to content

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 the most likely advantage of a profession regulating itself (self-regulation) rather than being regulated directly by the government?

The main advantage of self-regulation is that members' expertise is used to set practical, relevant standards. Practitioners understand the work and can adapt rules quickly. It does not guarantee higher public confidence or freedom from conflicts of interest, which are recognised weaknesses of self-regulation.

  1. AMembers' technical knowledge is used to set practical standards and rulesCorrect
  2. BPublic confidence is always higher than under statutory regulation
  3. CDisciplinary decisions are guaranteed to be free of any conflict of interest
  4. DMembers are not required to follow any rules on ethics

Explanation

Self-regulation lets practitioners who understand the work design workable, relevant rules and respond quickly to change. Option B is wrong because self-regulation often attracts criticism about independence, so confidence is not always higher. Option C is wrong because a body policing its own members can face conflicts of interest, which is a recognised disadvantage.

Did you get it right without looking?

One question tells you little. A timed set on The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession shows your real accuracy, how long you take and where you lose marks.

Practise The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy professionFree diagnostic mock

More The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession questions