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The corrosive effects of neoliberalism on the UK financial crises and auditing practices: A dead-end for reforms

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  • Sikka, Prem

Abstract

The UK's financial sector has been the subject of frauds and crisis during every decade since the 1970s. The crisis has been fuelled by neoliberal ideologies which emphasise light-touch regulation, individualisation, excessive faith in markets and pursuit of private profits, with little regard for social consequences. Auditors are expected to flag matters of concern to shareholders and regulators, but that did not happen in the events leading to the 2007–2008 banking crash or any of the other headline scandals. Despite the failures, banking and auditing reforms continue to be grounded in neoliberal ideology and are unlikely to address the crisis.

Suggested Citation

  • Sikka, Prem, 2015. "The corrosive effects of neoliberalism on the UK financial crises and auditing practices: A dead-end for reforms," Accounting forum, Elsevier, vol. 39(1), pages 1-18.
  • Handle: RePEc:eee:accfor:v:39:y:2015:i:1:p:1-18
    DOI: 10.1016/j.accfor.2014.10.004
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    References listed on IDEAS

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    3. Madzivire E.T & Nyamwanza L & Mushonga W & Takachicha M. T & Mulonda D, 2020. "An Investigation on the Effectiveness of Forensic Audit as a Tool for Fraud Detection and Prevention," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 10(2), pages 49-67.
    4. Charl de Villiers & Pei‐Chi Kelly Hsiao, 2018. "A review of accounting research in Australasia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 58(4), pages 993-1026, December.

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