After Seven Decades of Regulation, Why is the Auditing Profession in Such a Mess?

Abstract

Regulation Fair Disclosure or Reg FD curbs selective disclosures by corporate boards and executives of material, nonpublic information to favorite research analysts or portfolio managers prior to giving information to the general public. Although, it does not require companies to disclose any material information in excess of the requirements of existing securities laws, the disclosure must be done publicly rather than to selected market participants.