Accounting Regulatory Architecture in Asia

Author(s): Walter Yao and Linda True

Accounting regulatory regimes play a critical role in ensuring the reliability of financial data and the credibility of a company, and ultimately in supporting the stability of an economy. For the United States, the collapse of the Enron Corporation and the eruption of other financial statement related scandals a decade ago stand as clear reminders of the importance of reliable audit reviews and adequate regulatory oversight. These scandals led to the passage of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley Act). This legislation created an independent accounting oversight board to supervise the U.S. accounting industry and instituted a number of new audit-related requirements. Prompted in part by these U.S. actions, many Asian economies have established similar regulatory bodies and standards for their domestic accounting industry.

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Walter Yao

is a Director in the Division of Financial Institution Supervision and Credit (FISC) at the Federal Reserve Bank of San Francisco.

 

Linda True

covers digital banking and lending on the Fintech team at the Federal Reserve Bank of San Francisco. She previously covered Asian economies as part of the Bank's Country Analysis Unit, with special focus on ASEAN economies.