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The basic argument in defense of accounting deregulation is that accounting information should be regarded like other products and services and therefore regulators should step away and allow the forces of demand and supply to determine the quantity that is supplied. Several arguments have been put forth to support this point of view. Of these, one main argument is that, even if there is no regulation, there are private Economics-based (Adam Smith's Invisible Hand Theory) motivations for the firm to provide authentic information about its business and financial position to interested stakeholders outside the firm, and if it does not do so, the expenses of the firm's activities will increase.

The foundation of this perspective is that if there is no information about the firm's activities, other stakeholders, such as the title-holder of the firm (or the shareholders) who do not participate in the operation of the firm, will believe that the managers might be running the firm for their own profit. This means that the managers will run the firm for their own personal profit, and will not do so with the aim of increasing the profitability of the firm (there is believed to be a lack of correlation of targets between the owners and the managers). In addition to this, it will be believed that possible 'external' shareholders will want the managers to take advantage of every opportunity available, and if there are no protections, they will decrease the amount they are willing to fork out for the shares of that company. In the same manner, following this Economics-based point of view of 'rationality' (self-interest), prospective creditors (such as banks and bondholders) are expected to want managers to embark on opportunistic operations with the finance the lenders are willing to lend, and for this reason, if there are no protections, these creditors will ask the firm for a higher rate at which they loan their money, i.e, a higher interest rate. The assumptions listed above assume that the managers and the shareholders will work to maximize their own self-interest.

为什么这是一个坏主意？——WHY IS THIS A BAD IDEA?

Despite proofs in support of deregulation, several individuals state very firmly that less regulation is healthier for any profession, regardless of how serious the problem at hand may be. Governmental regulation is always believed to be detrimental for any profession, unproductive, and always more costly in general as compared to allowing the market place to run things out on its own. This perspective has been supported by such individuals as Ronald Reagan as well Grover Norquist (who went so far as to state that the government should not have any say in anything).

The disasters of Enron were a direct consequence of there being too little or too ineffective regulation. There were unquestionably quite a few other elements at play, but had accountants and auditors, even financial institutions been appropriately monitored, the issues would be not be acute as it was and it would be much less difficult to handle.

Enron's fraudulent financial statements did 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。