Financial Regulation

Please refer to attached files.
Attachment 1: Learning Objective (LO) 3.13.
Attachment 2: Case Study ‘THE PURIFICATION PROCESS’ in FINANCIAL ACCOUNTING in the NEWS 3.8 and DO Question 37 (a,b) ONLY.

Question 37,
Read the extract from the article by Kath Walters and John Stensholt called ‘THE PURIFICATION PROCESS’ in FINANCIAL ACCOUNTING in the NEWS 3.8 and answer the questions that follow.

REQUIRED,
(A) Which of the three theories that seek to explain why regulation is introduced (as discussed in this chapter) is most helpful in explaining the corporate governance and auditing reforms referred to in the article? Give reason for your answers.

(B) To what extent is there evidence in the article to support the application of the two theories of regulation to the reforms referred to in the article? (learning objective LO3.13)