WPP in audit review

THE STRUGGLING advertising group WPP is considering appointing new auditors, writes Neil Thapar.

The annual audit, which cost the company pounds 2.4m in 1991, is at present carried out by Arthur Andersen, which was first appointed seven years ago. However, the company confirmed yesterday that the audit was under review.

The move has sparked considerable interest among rival accountancy firms, which plan to tender for the company's audit. However, Price Waterhouse is unlikely to apply for the job as it already acts for WPP's banking consortium.

The review comes a year after Arthur Andersen qualified WPP's 1991 annual accounts because of uncertainty over a dollars 400m refinancing plan.

WPP, which made an pounds 88m rights issue last month to pay off a bridging loan, said the review was 'normal procedure' and aimed at ensuring that it received appropriate and competitive service from its auditors.