School of Business
Accounting, Financial Crisis, Subprime Crisis, Mandatory Audit Firm Rotation, Dodd-Frank Act, Sarbanes-Oxley Act, Green Paper on Audit Reform
Chutchev, Vladislav, "The Effect of the Financial Crisis on the Accounting Profession in the United States and Europe" (2019). Senior Honors Theses. 898.
While the accounting profession received a great deal of the blame for the 2007-2008 financial crisis, it was only one of a myriad of factors that contributed to the subprime mortgage debacle and resulting economic downturn. The crisis not only affected the market in the United States, but also had a significant impact on the worldwide economy, and especially that of the European Union. In the aftermath of the crisis, existing audit policies and standards were brought into question, and while slight changes were implemented in the U.S. as the result of the Dodd-Frank Act, more substantial reform took place in the EU with the implementation of policies such as mandatory audit firm rotation and increased oversight.