Reference no: EM132714961

Question: 1. General acceptance of accounting standards is important to the accounting profession. By whom does the profession require general acceptance of the standards, and why is it important to the profession?

2. The text describes a theory of regulatory capture.

(a) What is regulatory capture?

(b) How can standard setting bodies such as the Fiji Institute of Accountants avoid regulatory capture?

3. Elaborate on the argument for the regulatory approach to standard setting, then discuss on the argument for the free-market approach to standard setting. Finally, analyze the arguments and conclude in favor of one approach rather than the other (which approach you favor is up to you, but you must decide which which approach is better, at least under a set of assumed circumstances).