Deloitte replaces PricewaterhouseCoopers as Tesco auditor after scandal

Tesco, Britain’s biggest retailer, has named Deloitte as its new auditor, ending its 32-year relationship with PricewaterhouseCoopers (PwC) after an accounting scandal.

The appointment follows a formal tender process in which PwC did not take part.

Tesco said yesterday: “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 in September it had overstated first-half profits by £250m (€349.2m) due to incorrectly booking payments from suppliers — a sum later raised to £263m.

The scandal led to the suspension, then exit, of several senior executives, and sparked probes by the Serious Fraud Office, the Financial Reporting Council, (FRC) and a grocery industry watchdog. It could also prompt investor lawsuits in Britain and the US.

PwC has not commented directly on the scandal, but said when the FRC investigation was announced in December it would co-operate fully and was committed to delivering work to the highest professional standards.

Tesco’s new CEO Dave Lewis has since changed the retailer’s relationships with suppliers.

Reuters