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Background

A need for professions arose when society evolved to become more complex and deeper knowledge required to solve society's problems. A profession that is constantly exposed to changes is accountant profession. On April 1th, 2010, the share capital lowered from SEK 100 000 to 50 000. The Swedish government expected future consequences to be more entrepreneurship when such reductions would lead to a more accessible alternative but, less of the negative effects is mentioned. It is important that politicians know the consequences, both positive and negative. This change not only affects the accountant profession but also the entrepreneurs, and it opens up to different interpretations. Interpretations of a change may depend on which properties are shown to be significant. 

Purpose

The purpose of this paper is, based on the auditor's perspective, to explain what characteristics exhibited in the auditor profession and the entrepreneur in interpreting of the law change. This will then describe how these characteristics may affect the interpretation of the reduction of share capital requirement and how this can create an information asymmetry. 

Theory

Here are the theories that form the basis of our research. The theories that we have used is the theory of the accountant profession, entrepreneurial theory and the theory of information asymmetry. 

Method

The study was conducted by interviewing five auditors. 

Empirical material

Here we present respondents' aggregated responses based on four overarching issues. 

Conclusions

Accountant profession see and understand with the help of their characteristics change with different eyes than what the entrepreneur is, based on the auditor's perspective. Just because they have different characteristics that emphasize they focus on different things at a change and thus look at it in different ways. Their various interpretations are leading to an information asymmetry.