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.

Related Articles

David Sproul, Senior Partner and Chief Executive, Deloitte

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

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

Accounting Firms Financial Power List 2018: 1-5 revealed

5m Lucy Skoulding, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

8m Emma Smith, Managing Editor
FRC closes investigation into PwC over Barclays compliance

Accounting Firms FRC closes investigation into PwC over Barclays compliance

8m Alia Shoaib, Reporter
Top 50+50: Firms fall short on diversity

Accounting Firms Top 50+50: Firms fall short on diversity

8m Alia Shoaib, Reporter
PwC’s five strategic priorities for becoming ‘the leading professional services firm’

Accounting Firms PwC’s five strategic priorities for becoming ‘the leading professional services firm’

9m Emma Smith, Managing Editor
FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

Accounting Firms FRC closes KPMG HBOS audit investigation, Treasury Committee expects ‘full explanation’

9m Emma Smith, Managing Editor
PwC publishes 12.8% BAME pay gap

Accounting Firms PwC publishes 12.8% BAME pay gap

9m Emma Smith, Managing Editor