Regulation (Unit 3)

Chapter 3 of the course text discusses several approaches to setting accounting standards.

"The conceptual framework provides the foundation these standards. Hines argues that the conceptual framework has been used to legitimize the accounting profession, especially in times when the profession has come under attack".

a) Explain which theory of regulation best supports such an argument. Note: (use either public interest theory or regulatory capture theory or public interest theory but use only one to best support the argument.