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Tesco changes auditor in light of accounting scandal

By Loukia Gyftopoulou

Tesco is ending its 23 year relationship with auditor PwC following a £263m accounting scandal that hit the UK grocer last year.

Deloitte has been appointed as the company's new statutory auditors and is subject to approval by the shareholder at the annual general meeting on 26 June 2015.

The supermarket said there was mutual agreement that the PwC will not take part in the tender process.

Last year Tesco engaged Deloitte to undertake 'an independent and comprehensive review' following the discovery that the company's six-month profit had been overstated by £250m.

Deloitte concluded that the British grocery giant's profit overstatement was £13m larger than initially foreseen and set at £263m.

Tesco and PwC are currently being investigated by the Serious Fraud Office (SFO) and the Financial Reporting Council (FRC) respectively.

Commenting on the change, Tesco chairman John Allan thanked PwC and for its contribution and said the company is looking forward to working with Deloitte.

A PwC spokesperson said: "We mutually agreed with Tesco that we would not take part in the tender process and will stand down as the company's auditors after the conclusion of the 2015 AGM."

 

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