Financial Reporting Council drops investigation into Tesco audits
The Financial Reporting Council has announced the closure of an investigation into PricewaterhouseCoopers and its auditing of Tesco's accounts.
"There is not a realistic prospect that a Tribunal would make an Adverse Finding against PwC LLP... in respect of the matters within the scope of the investigation."
The investigation relates to an overstatement of its profits in 2014 which resulted in the FCA ordering Tesco to compensate around 10,000 buyers of Tesco shares and bonds.
Tesco was also fined £129 million by the Serious Fraud Office, resulting in the FCA deciding not to impose a further financial penalty.
The total amount of compensation that may be payable under the scheme will is expected to be approximately £85 million, plus interest.
The Financial Reporting Council concluded that "there is not a realistic prospect that a Tribunal would make an Adverse Finding against PwC LLP... in respect of the matters within the scope of the investigation".
However its investigation into other accountancy bodies, including Members of the Institute of Chartered Accountants in England and Wales, is ongoing.
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