FRC closes investigation into PwC over Tesco accounts
The Financial Reporting Council has announced the closure of an investigation into PwC’s auditing and accounting of Tesco
The Financial Reporting Council has announced the closure of an investigation into PwC’s auditing and accounting of Tesco
The Financial Reporting Council (FRC) has announced the closure of an investigation into PwC’s auditing and accounting of Tesco.
The independent watchdog launched a probe in 2014 to examine the “‘preparation, approval and audit of the financial statements of Tesco plc” in the financial years of 2012-2014. The investigation followed Tesco overstating its profits for the first half of 2014 by £263m. This figure was later raised to £326m.
The executive council to the FRC said that there was “not a realistic prospect that a tribunal would make an adverse finding against PwC”. The council has therefore decided to close the investigation.
There is still an investigation ongoing into “other members of the accountancy bodies”, the FRC said.
The Serious Fraud Office (SFO) launched a criminal probe into Tesco in 2014, eventually charging three former Tesco executives with fraud in September 2016. In April this year, the supermarket giant reached a deferred prosecution agreement with the SFO, resulting in a financial penalty of £129m, and a separate settlement of £85m as compensation to investors, plus costs.
Deloitte replaced PwC as Tesco’s auditor in 2015.
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceThe FRC regulator’s audit quality scores show a slight improvement despite “unacceptable” reviews from Mazars and BDO Read More...
View articleThe FRC intervention to prevent cheating in the UK follows huge fines issued to firms in the US, Australia, and Canada Read More...
View articleThe judgement concludes more than five years of probes into the audit firm’s accounts Read More...
View articleIndustry observers believe splitting audit and consulting operations could reduce risk of reputational damage Read More...
View articleDuring a conversation with Accountancy Age, Mazars partner Bob Neate breaks down the draft audit reform bill, warning of a potential capacity issue fo...
View articleThe sanctions relate to the firm’s audit of Conviviality PLC between 2017 and 2018 Read More...
View articleSpeaking exclusively to Accountancy Age in the first of a two-part series, Sir Donald Brydon - author of the report into the effectiveness and quality...
View articleFollowing the release of the Brydon report, in which Sir Donald Brydon has made 64 recommendations on how to improve the troubled UK audit industry, A...
View article