The Role of Accounting Regulation On Wednesday, July 10, 2002, the Wall Street Journal reported the following headlines:
Securities Threat1
Bush Crackdown on Business Fraud Signals New Era
Stream of Corporate Scandals Causes Bipartisan Outrage; Return of Big Government?
Fiery Rhetoric on Wall Street
President Bush’s tongue lashing of big business marks a swing of the American political pendulum away from a quarter century of bipartisan deference to capitalists. “We will use the full weight of the law to expose and root out corruption.”
“Book cooking” has eroded “the trust and the confidence that is absolutely vital to the function of our capital markets,” Rep. Patrick Toomey, a Republican from Pennsylvania, said.
Required Discuss the role of accounting regulation. Why is trust vital to the function of our capital markets?