Happy Xmas Tesco! Have another inquiry!
The Financial Reporting Council (FRC) have announced, hopefully in a scribbled message inside a Christmas card to Tesco, that they'll be opening a new inquiry into the supermarket's error laden accounts for the years 2012, 2013 and 2014.
The FRC said it would be pay particular attention to the role of Tesco's auditor PwC "in relation to the preparation, approval and audit of the financial statements of Tesco."
If you've missed all the Tesco laughs, they've had to write off £263m in profits after they buggered up their accounts and made-up all manner of profits.
Of course, the Financial Reporting Council will be looking hard at Tesco's auditors, who happen to be PwC and the Serious Fraud Office will also be talking to Diageo and Unilever who have done deals with Tesco, which means a lot of paperwork is getting scrutinised. Tesco will be crapping their pants as all this, even if it transpires that they're in good shape, will be ravaging the confidence of investors.
Shareholders have been angered by the mess, and Tesco chairman Sir Richard Broadbent stood down, insisting that he exited because it was the 'right thing to do', rather than legging it before the inevitable chop. He's said in the past: "On behalf of the board, to demonstrate to the world that principles exist, I choose to go. You can’t really say that nobody is carrying the can."
Looks like Tesco's woes are going to reach far beyond the New Year.