Problem:
The new hires will be involved in gathering corporate information for audits. They will need to make decisions on corporate responsibility based on regulations. As the manager, you feel corporations don't need to be regulated. You believe the market will take care of itself because poor management is what causes companies to eventually go out of business. One of your new hires, Tresh, says she disagrees with you. She feels corporations need to be regulated based on historical behavior. Because of Tresh's statement, you discuss your understanding of the regulatory history of accounting and corporations. Include the following:
- The history and role regulation has played in U.S. accounting applicable to standards and reporting.
- The 2 regulations that are the most important and why.
- Are more regulations needed? Why or why not?