Tesco has appointed Deloitte LLP as its new auditor after ending its relationship with PricewaterhouseCoopers after more than three decades, in the wake of the £263m accounting scandal.
The retailer said following the conclusion of a formal tender process Deloitte would take over subject to approval by shareholders at the 2015 AGM, next month.
PricewaterhouseCoopers LLP agreed not to take part in the tender process and will stand down at the end of June, Tesco said.
It has been reported that Tesco directors were unhappy with efforts by PwC to distance itself from the black hole in its accounts, despite having signed off the accounts.
Tesco chairman John Allan said: “On behalf of the Board, I would like to thank PricewaterhouseCoopers LLP for their significant contribution over the past 32 years, and we look forward to working with Deloitte LLP going forward.”
PwC is currently under investigation by accounting watchdog the Financial Reporting Council for its involvement in the external audit of Tesco’s results for 2011-12, 2012-13 and 2013-14.
Tesco’s £263m profit overstatement, related to the timing of the realisation of commercial income, is currently being investigated by the Serious Fraud Office and the Financial Conduct Authority.
A Tesco investigation into the affair found that profits were overstated by £118m in the first half of its 2014/15 financial year and by £70m in 2013/14 and £75m before that.
Sainsbury’s’ also announced its intention to drop PwC as its auditor in favour of Big Four rival EY in January.
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