Tesco parts company with PwC
Print13 May 2015
Deloitte has been named as Tesco’s new auditor, marking the end of the retailer’s 32 year relationship with PricewaterhouseCoopers (PwC), following an accounting scandal.
The appointment occurred after a formal tender process that PwC did not participate in.
“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.
Tesco said in September it had overstated first-half profits by £250 million due to incorrectly booking payments from suppliers, and this figure later rose to £263 million. This led to the suspension, and then departure of several senior executives, and sparked investigations by Britain’s Serious Fraud Office (SFO), accounting watchdog, the Financial Reporting Council (FRC) and a grocery industry watchdog. It could also lead to investor lawsuits both in Britain and the United States.
The Irish Times reports PwC has not commented directly on the scandal, but in December, said it would cooperate fully with the FRC inquiry and was committed to delivering work to the highest professional standards.
Tesco’s auditor since 1983, PwC’s auditing of the supermarket’s 2014-15 accounts was its final act for the company.
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