Question 3 (25 marks)

a) Outline and discuss three cultural aspects that can differ across countries. How do these cultural differences relate to differences in accounting systems? (15 marks)

b) Regulatory and Political Influence on Accounting Practice.Those in favour of regulating the provision of financial accounting argue that accounting is a public good and that without regulation, there is a problem of 'freeriders'. Explain what is meant by the notions of public goods and freeriders, and why proponents of regulation use them to support their views. Assess the merits of their argument. (10 marks)