The regulation of accounting can be argued to be necessary to protect the information rights of parties not involved in the day-to-day operations of the organisation.

Question

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Accounting regulation ensures that financial information is accurate and transparent, which protects the interests of investors, creditors, and other stakeholders who rely on such information to make decisions about the organization. It also promotes ethical behavior and standardizes reporting practices, making it easier for users to compare financial information across companies.

The Regulation of Accounting Can Be Argued to Be Necessary