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Tesco finds new auditor in Deloitte

Tesco has parted ways with PricewaterhouseCoopers, replacing the auditors with Deloitte and bringing a relationship of 32 years to an end.

The appointment of Deloitte came once the tender process was complete. PwC was not involved.

Tesco released a statement, in which it said:

“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.”

Explaining an incident that ranked among the UK’s most notorious accounting scandals, Tesco admitted in September of last year that its profits from the first half of 2014 showed an overstatement of £250 million, after it erroneously accounted for payments that came from suppliers. That figure later rose to £263 million.

After the admission, the supermarket giant saw senior executives walk out of the door and was subjected to investigations from regulators. Tesco is also having to deal with legal action taken by shareholders.

The firm’s new executives have been pushing to improve its failing image and ensure errors that resulted in the scandal do not happen again. Dave Lewis, CEO, has made changes to Tesco’s supplier relationships.

The retailer earlier announced that dozens of branches would be closed in a bid to cut costs.

The Tesco story is a lesson to any business in the importance of keeping financial records as accurate as possible. Fortunately, most SMEs won’t need the service of PwC or Deloitte, and can find an accountant in the Wirral to represent them and ensure that the numbers add up.

Posted by Louise
May 20, 2015
Finance

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