Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Tesco names Deloitte as new auditor after accounting scandal

Published 11/05/2015, 12:05
© Reuters. A man pushes a pram past a Tesco supermarket near Altrincham, northern England
TSCO
-
BMVP
-

LONDON (Reuters) - Tesco (LONDON:TSCO), Britain's biggest retailer, has named Deloitte as its new auditor, ending its 32-year relationship with PricewaterhouseCoopers (PwC) (PWC.UL) after an accounting scandal.

The appointment follows a formal tender process in which PwC did not take part.

"We and PwC mutually agreed that they would not take part in the tender process. PwC will therefore stand down as the company's auditors at the conclusion of the 2015 annual general meeting," Tesco said on Monday.

Tesco said in September it had overstated first-half profits by 250 million pounds due to incorrectly booking payments from suppliers, a figure it later raised to 263 million pounds.

The scandal led to the suspension, then exit, of several senior executives, and sparked investigations by the Serious Fraud Office (SFO), accounting watchdog the Financial Reporting Council (FRC) and a grocery industry watchdog.

It could also prompt investor lawsuits both in Britain and the United States.

PwC has not commented directly on the scandal, but said when the FRC investigation was announced in December that it would cooperate fully with the inquiry and was committed to delivering work to the highest professional standards.

Tesco's new chief executive Dave Lewis has since changed the retailer's relationships with suppliers.

© Reuters. A man pushes a pram past a Tesco supermarket near Altrincham, northern England

PwC has been Tesco's auditor since 1983. Its auditing of the supermarket's 2014-15 accounts was its final act for the company.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.