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FRC appoints audit choice advisory group. By Dan Martin

The Financial Reporting Council (FRC) has appointed the members of a group who will identify and assess possible actions to mitigate the risks arising from the perceived lack of auditor choice for the UK's biggest companies.

The Market Participants Group (MPG) is 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.

FRC claimed members of the MPG 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.

Paul Boyle, FRC chief executive, said: "We are delighted with the quality and seniority of individuals who have agreed to be nominated to the group, and believe we have a good balance of membership between the corporate community, audit firms and investors and other stakeholders."

The creation of the group follows the release of a report earlier this year which said smaller accountancy firms are struggling to secure contracts for auditing big companies, while large businesses themselves have little choice when selecting an auditor. The Big Four currently audit all but one of the FTSE 100 companies and 97% of the FTSE 200.

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