Watchdog drops probe into PwC over Tesco scandal

PwC is in the clear over the Tesco accounts scandal after the industry watchdog today dropped a long-running probe into the firm.

The Financial Reporting Council, the accountants’ regulator, said there was “not a realistic prospect” of finding PwC had done wrong after approving Tesco’s accounts between 2012 and 2014.

Three former Tesco executives are due to stand trial on fraud and false accounting charges in September.

The food giant, led by Dave Lewis, agreed to pay £129 million in compensation earlier this year after it overstated profits in 2014.

PwC was fined £5 million last month by the FRC after admitting failures in auditing social housing group Connaught, which collapsed in 2010.

PwC said: “We cooperated fully during the FRC’s thorough investigation and are pleased the FRC has closed it without any further action.”