What is it about?
This chapter addresses the need to mitigate regulatory and accounting policy differences through regulatory structure reforms and Enforced Self Regulation
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Why is it important?
This is important - not only in view of the need for greater regulatory convergence and harmonisation in the application and interpretation of rules and standards, but also for the increasingly important roles assumed by the accounting profession in the regulatory aspects of data and audit analytics............ The need for an oversight board is evidenced through recent regulations and standards such as "the Critical Audit Matters" which engage not only the securities sector, regulator, namely the SEC, but also the PCAOB, as well as the Centre for Audit Quality.
Perspectives
The increasingly intertwined relationships between the regulatory and accounting sectors will be facilitated in the future by the use of forward looking techniques, Artificial Intelligence and block chain technologies. However, distributed ledger technologies will need to be regulated from a central control authority in order to harness its potential to regulate - namely to facilitate the authorisation and verification of DLT platforms. In respect of emerging technological risks, audit engagement teams, audit committees and other experts within the audit and accounting profession will have important roles to play in respect of internal controls and corporate governance procedures. This particularly in respect of more strategic level based functions which engage higher levels of reasoning, judgment and human competences which Artificial Intelligence, at its present state (although machine learning processes are advancing progressively), cannot undertake as well as robotic and repetitive functions.
Prof Marianne Ojo
Northwestern University
Read the Original
This page is a summary of: Fair Value Accounting and Procyclicality: Mitigating Regulatory and Accounting Policy Differences Through Regulatory Structure Reforms and Enforced Self Regulation, SSRN Electronic Journal, Social Science Electronic Publishing,
DOI: 10.2139/ssrn.1777944.
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