Corruption in Finance – The Role of the Investment Consulting and the Financial Auditing Industries

Abstract

It is well-reported that financial and investment sectors of the economy have grown in recent years, but also that problems of corruption, both institutional and venal, are present. Within the sector, financial auditors and investment consultants have been entrusted to work with and for those for whom financial sector stability and adequate financial returns are crucial. However, these two professions have too often served as handmaidens of corruption. This chapter reviews the history of financial auditing and investment consulting and outlines areas in which corruption manifests. It argues for an end to corruption and it asserts that the two professions could and should be the core of an uncorrupted robust system of financial practice and regulation. Such an arrangement could safeguard a world in which investment business practices are sustainable, honest, and truly productive.

Citation

Youngdahl, J. (2017), "Corruption in Finance – The Role of the Investment Consulting and the Financial Auditing Industries", Aßländer, M.S. and Hudson, S. (Ed.) The Handbook of Business and Corruption, Emerald Publishing Limited, Leeds, pp. 279-303. https://doi.org/10.1108/978-1-78635-445-720161013