RSS feedsThe Financial Reporting Council has approved an advisory group, which will ‘identify and assess possible actions' which auditors can take to counteract the perceived risk of limited choice in the provision of audit services to public interest entities.
The group has been established following the government-commissioned Oxera report, published in April, which highlighted the fact that the Big Four audit 97% of FTSE 350 companies, and that many large plcs can only choose between two or three such firms.
Known as the Market Participants Group (MPG), it comprised of four representatives from the entities being audited, four from firms providing audit services, and four from shareholders and other users of audit services.
Members are appointed as individuals, based on their knowledge of the preparation or use of audit reports and the auditor selection process and on their seniority.
FRC chief executive, Paul Boyle said the group had a ‘good balance of membership between the corporate community, audit firms and investors and other stakeholders’.
