FRC marks progress on promoting choice in the UK audit market
29 Jun 09
The Financial Reporting Council has published its Third Progress Report on the implementation of the recommendations of the Market Participants Group and other relevant developments regarding the audit sector
The Financial Reporting Council has published its Third Progress Report on the implementation of the recommendations of the Market Participants Group and other relevant developments regarding the audit sector.
Progress achieved in implementation of MPG recommendations following the November 2008 update includes:
• the issue by the Consultative Committee of Accountancy Bodies of the Voluntary Code of Practice on Disclosure of Audit Profitability
• the publication by the Audit Inspection Unit (AIU) of public reports on audit firms which had been subject to a full scope AIU review.
Other relevant developments include an exposure draft of revised Ethical Standards and the closure of consultations by the European Commission and the Audit Firm Governance Working Party on, respectively, ownership rules and a governance code for audit firms.
Paul Boyle, chief executive of the FRC said: “Despite the progress that has been made, the FRC continues to have significant concerns about the risks posed by audit market concentration and believes that these risks are likely to continue for the medium to long term.”