SocialNormsvs.StandardsofAccounting.pptVIP

Social Norms vs. Standards of Accounting;Summary;Institutionalization of Rule Making;Keeping the Government Out;Structural Weakness;Incentives Created by Private Rule Making Institutions;Effect of Rule Makers on Behavior of Auditors;Hide-and-Seek at the Wall Street;Rule-Making Monopolies;Why the Shift from Norms to Written Prescriptive Standards;Errors of Inclusion and Exclusion in Classification Schemes;Basic Records Approach;Clear Rules or Road Maps for Evasion;Nature of Social Norms;Example of an Accounting Norm;How Do Norms Work?;Norms in Accounting;Dictionary and Inventory of Accounting;Beliefs about Enforcement and Effectiveness;Possible Reforms;Thank You.;;;Outline;Accounting Abuses;Exhibit 1: Financial Reports Restatements in U.S. in 1990-2002(Sources: Financial Executives International and General Accounting Office);A Short-Term Perspective;Medium-Term Perspective;Longer-Term Perspective;Accounting by Norms;Facilitating Evolution of Norms;Norms as an Attitude;Norms Not Enough: An Era Ends;Federal Securities Regulation;Standards as Progress;Standards Leave Documents for Historians;The Appeal of Standards;Norms Are Messy;What About Enforcement;E-Commerce Privacy;Average Number of E-mail Messages Generated Per Week(Source: Jamal, Maier, and Sunder, 2005);Notifying Visitors: Disclosure of Privacy Policies on U.S. and UK Websites(Source: Jamal, Maier, and Sunder, 2005);Failures of Market and Regulation;1. The Information Problem;Evolution Incorporates Much Information;2. The Design Problem;3. The Gaming Problem;4. The Signaling Problem;Limits of Written Standards;Drawing Road Maps for Evasion;Legal Audit Requirement;An Agenda for Reforms;Thank You