FRC closes investigation into PwC over Tesco accounts

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 (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.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

6m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

7m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

7m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

8m

Related Articles

New research shows multidisciplinary firm structure to improve audit quality

Accounting Firms New research shows multidisciplinary firm structure to improve audit quality

2w Leanna Reeves
Thomas Cook: Case for investigation to be assessed by FRC

Accounting Firms Thomas Cook: Case for investigation to be assessed by FRC

3w Chris Jewers
Deloitte reports revenue rise of 10.9% to £3.97bn

Accounting Firms Deloitte reports revenue rise of 10.9% to £3.97bn

2m Chris Jewers
PwC accountant caught with 1700 upskirting images on phone

Accounting Firms PwC accountant caught with 1700 upskirting images on phone

3m Chris Jewers
FRC audit inspection finds no improvement on last year

Accounting Firms FRC audit inspection finds no improvement on last year

3m Chris Jewers
PwC forges maritime supply chain link with Pole Star

Accounting Firms PwC forges maritime supply chain link with Pole Star

1y Chris Warmoll, Writer
David Sproul, Senior Partner and Chief Executive, Deloitte

Accounting Firms David Sproul, Senior Partner and Chief Executive, Deloitte

2y Lucy Skoulding, Reporter
Financial Power List 2018: 1-5 revealed

Accounting Firms Financial Power List 2018: 1-5 revealed

2y Lucy Skoulding, Reporter