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Philipsen, Niels J. --- "Regulation of Accountants" [2012] ELECD 449; in Van den Bergh, J. Roger; Pacces, M. Alessio (eds), "Regulation and Economics" (Edward Elgar Publishing, 2012)

Book Title: Regulation and Economics

Editor(s): Van den Bergh, J. Roger; Pacces, M. Alessio

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847203434

Section: Chapter 17

Section Title: Regulation of Accountants

Author(s): Philipsen, Niels J.

Number of pages: 28

Extract:

17 Regulation of accountants
Niels J. Philipsen



1. INTRODUCTION

The services provided by the accounting professions (including auditors,
accountants and tax advisers) generally include statutory and internal audits,
other accountancy services ­ such as advice on financial controls, due dili-
gence, and insolvency practice ­ and tax advisory services. Accountants may
also participate in a wide range of related business activities, such as business
valuation, forensic investigation, strategic planning, sales and marketing, and
information technology and human resources management (Competition
Bureau, 2007, p. 43). In this chapter the focus will be on statutory audits and
other accountancy services reserved to one or more branches of the account-
ing profession.
In most jurisdictions the provision of statutory audits is an exclusive right
reserved for `public accountants', but the names of these professions differ
from country to country. Exclusive rights may also apply to the provision of
some of the other accountancy services mentioned above. In some countries,
for example, the provision of tax advice is an exclusive right that is restricted
to a particular profession. Of course, many other forms of entry and conduct
regulation can be found in the various jurisdictions. The relevant question
from a law and economics perspective is whether this regulation in fact
increases the quality of and access to accountancy services.
This chapter first summarizes the theoretical justifications for regulation of
accountants, which follow from the public interest approach to regulation.
Also the private interest perspective on regulation is presented briefly. It then
discusses the literature on some ...