Strengthening Public Confidence by Regulating Self-Regulation: A Government Initiative Gone Awry?

摘要

With Arthur Andersen, Enron, Martha Stewart and WorldCom at the forefront of public scrutiny, the Senate Banking Committee and the SEC are taking, what they consider, significant steps toward strengthening public confidence. In what seems to be an end to the era of self-regulation of the accounting profession, public, private and government agencies are involved in finger-pointing. Yet, issues and problems with self-regulation are not unique to public accounting? Both federal and state governments have long been involved in such a process. With a view toward proposed increased government regulation of the accounting profession, the authors briefly discuss the issue at both the federal and state levels, give a specific example of self-regulation gone awry, and examine the consequences.