CIMA issues comment to FRC's Market Participants Group on 'Choice in the audit market'

06 July 2007

CIMA (the Chartered Institute of Management Accountants) has issued comment to the FRC's (Financial Reporting Council) Market Participants Group (MPG) with regard to their interim report on 'Choice in the UK audit market'.

The Institute is strongly supportive of the group's market-based approach and welcomes the package of pragmatic and proportionate recommendations. CIMA has further commended the FRC on its approach to the project which it believes could stand as a model for consultations in the future.

In particular, CIMA has supported the MPG's recommendation that the FRC should promote wider understanding of the possible effects on audit choice of changes to audit firm ownership rules. CIMA believes that there is a case for liberalising the audit firm ownership rules subject to appropriate safeguards and preferably accompanied by liability reform.

CIMA has also supported the suggestion that the FRC should provide independent guidance for audit committees and other market participants on considerations relevant to the use of firms from more than one audit network.

Charles Tilley, Chief Executive at CIMA, says:
"CIMA believes that this package of measures represents a step in the right direction. However, it is important to regard this project as an iterative process. The next challenge is to develop these proposals further into workable action plans which will fully engage all the market participants effectively."

ENDS

For further information, please contact:
Katie Scott
Senior Press Officer, CIMA
+44 (0) 20 8849 2347
Katie.Scott@cimaglobal.com

Notes to editors

1. CIMA (the Chartered Institute of Management Accountants) is the only international accountancy body with a sole focus on business. It is a world leading professional institute that offers an internationally recognised qualification in management accountancy, focusing on accounting in business, in both the private and public sectors. CIMA is the voice of over 158,000 members and students in 161 countries and is responsible for the education and training of management accountants who work in industry, commerce and not-for-profit and has more members in the public sector than any other UK based body. CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually to reflect the latest developments in global business. It is committed to upholding the highest ethical and professional standards of members and students, and to maintaining public confidence in management accountancy. For more information about CIMA, please visit www.cimaglobal.com.