SFO launches investigation into accounting practices at Tesco
The Serious Fraud Office (SFO) has launched a criminal investigation into accounting practices at Tesco, in the latest blow to the British grocer following the September announcement of a profit overstatement.
The SFO launched its investigation a week after Deloitte, appointed by Tesco to look into its accounts, published its findings and a week after the resignation of Tesco chairman Richard Broadbent.
Deloitte’s review found the error to be higher than initially forecast at £263m, with overstatements totalling £118m in the first half of the year, £70m in the previous financial period and £75m prior to 2013/2014.
As a result of the SFO’s investigation, the Financial Conduct Authority (FCA) has discontinued its own inquiry.
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