Audit failure and corporate corruption: Why Mediterranean patron-client relations are relevant for understanding the work of international accountancy firms

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Shore, Cris. 2021. Audit failure and corporate corruption: Why Mediterranean patron-client relations are relevant for understanding the work of international accountancy firms. Focaal: Journal of Global and Historical Anthropology, 2021(90), pp. 91-105. ISSN 0920-1297 [Article]

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Official URL: https://doi.org/10.3167/fcl.2020.072004

Abstract or Description

Patron-clientelism and corruption were traditionally viewed as problems endemic to underdeveloped marginal countries with weak states, powerful self-serving elites, and widespread civic disengagement. However, recent decades have seen a dramatic increase in corruption scandals in the Global North, particularly its more developed banking and financial sectors. Paradoxically, this has occurred despite a massive expansion in auditing by international accountancy firms (KPMG, PwC, Deloitte, EY) who oft en portray themselves as warriors of integrity, transparency, and ethical conduct. How are these trends connected? Drawing on anthropological studies of Mediterranean patron-clientelism, I illustrate how collusive relations between accountancy firms and their clients create ideal conditions for corruption to flourish. Finally, I ask how can these accountancy scandals help us rethink patron-clientelism in an age of “audit culture”?

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Article

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https://doi.org/10.3167/fcl.2020.072004