CIMA welcomes FRC report

News Article - 09 July 2007
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The Chartered Institute of Management Accountants (CIMA) has welcomed a report issued by the Financial Reporting Council's (FRC) Market Participants Group entitled Choice in the UK audit market.

Outlining some 15 ways in which market efficiency could be improved, the report - issued to guide the FRC on actions that could be taken by market players to mitigate risk - followed a pragmatic and market-based structure, CIMA has said.

The institute commented that it supports the recommendations outlined in the report, in particular, the proposal that the FRC could promote greater understanding of the effects on audit choice of changes made to the ownership rules of firms.

"CIMA believes that this package of measures represents a step in the right direction," said Charles Tilley, chief executive of the institute.

"However, it is important to regard this project as an iterative process," he added.

Mr Tilley stated that the next challenge would be to build upon the proposals and make them into "workable action plans".

Article keywords: A service to resolve disputes has been launched by the Chartered Institute of Management Accountants (Cima).<br/><br/>The facility, entitled the Alternative Dispute Resolution service, aims to settle the service-related differences of Cima members and their customers, retaining the public's confidence in the accountancy profession.<br/><br/>Conflicts will be approached in a conciliatory way, followed by arbitration when other measures fail.<br/><br/>Robin Vaughan, director of professional Standards at Cima, said: &quot;Cima ensures the highest ethical standards of our members and students and has a commitment to fulfil its obligation as a chartered institute to protect the public interest.&quot;<br/><br/>He added that the institute was &quot;delighted&quot; to provide the new service as one of many public interest measures, such as the Code of Ethics which was launched last year.<br/><br/>The service will be available in the UK for members in practice and will be run on behalf of Cima by the Chartered Institute of Arbitrators. <br/>

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