Accounting in Australia: Accounting basically incorporates the recording of events as well as the organization and detailing results, which is the main medium in discharging accountability. Accounting has developed to become an important element of the business fabric and economic development of a country and its organizations and institutions. This element has developed as a profession and business practice that is closely linked with the considerable economic development in Australia for more than two centuries. Currently, the regulatory framework in Australia is characterized by various regulatory agencies since there is no single organization that is responsible for setting standards for the accounting profession in Australia. There are claims that the current system of setting standards for accounting in the country is over-regulated.

Regulation of Accounting:

Similar to other professions, the accounting profession is described by the knowledge, skills, attitudes, and ethics of the professionals in the field. Therefore, the regulation of this profession is a specific response to the need for establishing some standards that should be met by the people in the accounting field. The nature and need for regulation of the accounting field is based on the existing market conditions in which the profession functions. The regulation of the accounting profession is geared towards ensuring the right quality and consistency in the quality of the accounting services ("Regulation of the Accountancy Profession," 2007). In order to provide appropriate quality of accounting services in the market, ethical rules and technical standards are established to represent the contracting users of the services.

The regulation of the accounting profession basically covers entry and licensing needs, performance of professional accountants, and disciplinary processes and systems. Some of the regulations in the field include educational requirements, compliance with these accounting regulations is promoted through high quality standards and procedures. The two basic ways of regulating professional accountants is through self-regulation and external regulation as well as a combination of both ways. In the self-regulation way, the responsibility of regulating accounting is delegated by the government to a specific professional body. On the contrary, external regulation is where the profession is regulated by the government through one of its agencies or an established independent agency.
Regulatory Framework of the Accounting Profession in Australia:

As previously mentioned Australia does not have a single body or agency that is responsible for regulating the accounting profession. Some of the bodies or agencies that are involved in regulating the various arms of the accounting field or profession include the Australian Securities and Investments Commission (ASIC). Additional regulatory bodies are Tax Practitioners Board, Insolvency Trustee Service Australia (ITSA), and Australian Prudential Regulation Authority (APRA). Therefore, the accounting profession is Australia has a co-regulatory framework since various bodies are involved in establishing standards for several arms of accounting.

Moreover, the co-regulatory framework in the country consists of regulators, standard-setting bodies, and three professionals accounting bodies that set benchmarks for the necessary levels of operation and technical skill ("The Regulatory and Co-Regulatory Framework," 2011). Notably, the country's regulatory framework is based on ethics, which an essential element of the profession, resulting in a broader co-regulatory approach. The development and analysis of the established accounting standards is conducted by one of the agencies to ensure that they match up with the appropriate practice, developments in regulation, and global standards.

Arguments on the Over-regulation of Accounting in Australia:

As a result of the co-regulatory framework for the accounting profession and standards in Australia, this field is largely considered to be over-regulated. The claims are fueled by the existence of several regulatory agencies as the country doesn't have a single body or agency that is mandated with the absolute responsibility of establishing…