Tesco Ends 32-Year PwC Relationship After Accounting Scandal
Tesco Plc ended a 32-year relationship with PricewaterhouseCoopers LLP by hiring Deloitte LLP as its new auditor, seeking to draw a line under a 263 million-pound ($406 million) accounting scandal.
The U.K.’s largest supermarket company selected Deloitte following a formal tender process, with the appointment being subject to shareholder approval at next month’s annual general meeting, Tesco said in a statement Monday. It was mutually agreed that PwC wouldn’t take part in the tender.
Dave Lewis, Tesco’s chief executive officer, promised “decisive action” last year after being forced to slash profit forecasts less than a month into his tenure. The Serious Fraud Office opened an investigation after Tesco said some income was booked before it was earned and costs recognized later than they were incurred.
The 32 years that Tesco has used PwC is among the longest period that any company in the U.K. benchmark FTSE 100 Index has kept the same auditor. The median tenure is 13 years, according to data compiled by Bloomberg.
“I would like to thank PricewaterhouseCoopers for their significant contribution over the past 32 years,” Tesco Chairman John Allan said in the statement. “We look forward to working with Deloitte going forward.”
Source: Bloomberg – Tesco Ends 32-Year PwC Relationship After Accounting Scandal
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