Regulation, Competition And Independence In A Certification Society: Financial Reports Vs. Baseball Cards

Mandatory certification of the financial reports of publicly-held corporations by independent auditors has been a key element in U.S. regulatory framework to improve financial reporting. The economic consequences of mandatory certification remain controversial. Although each market is unique, comparative analyses of certification services across markets can yield useful insights into the value and consequences of mandatory audit of financial reports. Using a framework for analysis of certification services, the authors report: descriptive data about certification activity for a range of private sector goods; qualifications and interests of experts who provide online certification or opinion for a fee; and analysis of an online market for certification of baseball card.