‘Regulation and audit’ examines some aspects of the regulation of financial reporting by looking at two national examples of regulatory frameworks: the UK and the USA. It addresses such questions as: why was the UK the first country to require published audited financial statements from companies? What sort of regulation does the state impose on accounting? Why does the USA have the world's oldest and toughest regulator of financial reporting? What is the purpose of audit? Does it really work? How is an audit conducted? The background to auditing is provided and the duties and responsibilities of auditors are explained.