the arguments for a regulatory approach and a free-market approach to standard setting.

Arguments for a regulatory approach

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Introduction

The size of the world is been shrinking from the last decade and it 's already been referred as a global village . The environment regulators and lobbying groups have been taking a special interest in the market system and seeing it as a powerful challenger . Due to this phenomenon it has created many opportunities as well as insecurities in every one 's mind . That resulted in an ongoing debate between the accountants who whether they should regulate

the market or not . The debate among the different sects of the accountants is whether they should regulate the market or not . There is a conflict of the viewpoints between the two groups required to the degree of the openness in the operations in the market

The law makers are with the notion that the government should intervene in the markets and create standards . We will call this regulatory approach

The industrialists are more of the opinion that market should be working freely but the government should make it certain that standards are not copyrightable . We will call this open or free market approach

Regulatory approach

This approach is mostly advocated by the law makers . They believe that regulations of financial market guard nation 's interest by protecting investors and guarding against the systemic risk

Stoll argues that regulation is justifiable because it protects the interest of the investors who are unacquainted and unskilled . The other reason for the financial...