Tesco misled auditors to inflate results

20 October 2014

tesco bag Everyone is still laughing at Tesco as their woes continue apace. The latest is that, according to leaks, investigators from Deloitte and Freshfields have discovered that a number of execs at the supermarket deliberately misled auditors and accountants to try and hide their dismal financial results.

This is all revolving around the £250m accounting scandal and various sackings that Tesco have found themselves lumbered with.

So what's the skinny? Well, it is thought that Tesco booked supplier payments that were reliant on condition of them hitting sales targets - ones that they were never, ever going to meet. It seems like this practice has been going on for a while, but were increased just before Tesco's spectacular slump.

To make things worse, it looks like Tesco's South Korean wing has been selling the personal data of more than five million customers to insurance companies, which is likely to end in prosecution. Things are so toxic in that area that Tesco's Asian operations could be sold off. However, that can't happen while there's an investigation going on.

As a result, Tesco’s share price has fallen by 48% since the start of 2014.

Tesco are a complete shambles at the minute, but it is very, very difficult to feel sorry for them after they aggressively muscled out countless independent retailers out of the market over the years. So, in short - Haw Haw!

TOPICS:   High Street News


  • Soronery
    What is it with this anti Tesco crap? They're no different to any other supermarket but do we hear any complaints against those - no? I thought not. Anyway, when my recently purchased Tesco shares have doubled in price - then we'll see who's laughing...
  • samuri
  • Patrick
    Tesco really are rubbish. They're constantly being deceptive with specials - I got sick of always being overcharged on my receipt and having to wait in the permanently long queue of refund seekers at the customer service counter. Despite Tesco being my closest supermarket, I now make a longer journey to both Waitrose and our new local Lidl - they're both far more transparent, consistent and friendlier.
  • LD
    Of course 'Sir' T. Leahy and the likes were close up to Gordon Brown and his cronies ... not to mention the land bank they are sitting on.

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