The Financial Reporting Council has today launched an investigation into Tesco’s last three annual accounts.
In a statement, the FRC has said it has launched an investigation into individual accountants and auditors, as well as PwC, in relation to the preparation, approval and audit of the financial statements of Tesco Plc for the financial years ending 25 February 2012, 23 February 2013 and 22 February 2014.
The independent regulator for accountants and actuaries will also be looking into their conduct in relation to matters reported in the company’s interim results for the 26 weeks ending 23 August 2014.
Tesco is already being investigated by the Serious Fraud Office after the supermarket giant announced in October its profits had been overstated by £263m.
The FCA was also looking into this issue but this was concluded when the SFO announced its probe and the City watchdog has turned over its evidence to its investigators.
Earlier this month Tesco’s shares plummeted 16 per cent after the supermarket warned its profits for the year ending February 2015 would not exceed £1.4bn - below market forecasts of £1.9bn.
This was the company’s fourth profit warning in six months.
A Tesco spokesman said: “We note the Financial Reporting Council is launching an investigation into individuals and a member firm in relation to the preparation, approval and audit of our accounts for the last three years.
“We will provide support to the FRC’s investigation.”
A spokesman for Tesco’s auditor, PwC, said: “We take our responsibilities very seriously and remain committed to delivering work to the highest professional standards.
“We will cooperate fully with the FRC in its enquiries.”
If the FRC takes the issue to a tribunal which finds in its favour, the regulator can impose unlimited fines, unlimited costs and individuals can be struck off from the profession.
