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Assignment: Self-Regulation in the Accounting Industry
In this Assignment, you will research recent important accounting industry events that have shaped the profession as we know it today.Due to several events, the public and legislators began to doubt the ability of the accounting profession to self-regulate. As a result, Congress reformed the accounting profession's system used for regulating itself.
Checklist:
1. Visit the Kaplan Library (access in the course home area) to research the accounting system of self-regulation. Describe at least one major historical event that occurred in the business world in the past 20 years and discuss how this affected today's accounting system of self-regulation.
2. Describe the legislation that altered the self-regulation process of the accounting profession.
3. Describe the regulation process for accounting firms that audit (A) public companies and (B) non-public companies.
4. Describe how this new self-regulation process would affect you as an auditor working for a large public accounting firm today. Discuss the strengths and weaknesses of self-regulation in the accounting profession as a result of the historical events you described.
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