In situations when society and regulators trust accountants to use their discretion wisely, accounting rules tend to be very specific and detailed.

Question

Quizplus · Accepted Answer

When there is greater trust in accountants, regulations tend to be less prescriptive and allow for more professional judgment and discretion. This is because the regulators and society have greater confidence in the integrity and expertise of the accountants. When there is less trust, regulations tend to be more prescriptive and specific to ensure compliance and prevent fraud or errors.

In Situations When Society and Regulators Trust Accountants to Use