News Article - 17 October 2007
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The Financial Reporting Council (FRC) has published the findings of a Market Participants Group (MPG) study into the audit industry.

As part of the council's Choice in the UK Audit Market project, the group unveiled a number of recommendations for the future of the sector.

The organisation's recommendations were aimed at reducing the risk to directors of choosing a firm outside of the Big Four, lowering the likelihood of firms leaving the market and minimising the impact such a move may have.

Paul Boyle, FRC chief executive and convenor of the MPG, said: "The group's recommendations have the potential, over time, to reduce the barriers to market efficiency."

Among the group's proposals were calls for audit firms to disclose financial results of their work on statutory audits and the recommendation that the FRC provides independent guidance for audit committees.

Responding to the report, Michael Cleary, head of Grant Thornton, told the Financial Times that change "has to come through the market" - something which could take a long period of time.

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