The existence of both principles-based and rules-based approaches to regulation has significant practical impacts on the compliance
Question:
The existence of both principles-based and rules-based approaches to regulation has significant practical impacts on the compliance function and the staff who work within it.
(a) Summarize what is meant by each of the three different regulatory approaches referred to in the above statement.
(b) Examine the aspects of each of these approaches on which the regulator(s) would primarily focus when assessing adherence to regulatory requirements within a regulated firm.
(c) Briefly compare and contrast the practical impact of each of these approaches on the compliance function of a regulated firm, identifying the potential benefits and potential difficulties of each.
All the above subquestions are inter-related.
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg