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The Tesco scandal

+10 Votes
The Tesco scandal

What lessons can be learned from Tesco after the UK supermarket chain embarked on excessively aggressive accounting to boost profits -

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January 5th 2015 AN ACCA USER 8,860 Points 2 Flags

6 Replies

+9 Votes

Ethics and Accounting practices, the essence of auditors, though not to guarantee, but to the best of their knowledge spot anomalies whether material or not, seeing that Pwc has been Tesco's auditor for a while now, how is it that they never identified or kept certifying that all was well with Tesco's books. I'll commend the management for taking the initiative of having Deloitte audit their books, this action might just have prevented a going concern issue for Tesco in the future as was the case of ENRON.

February 26th 2015 AN ACCA USER 320 Points
+4 Votes
This is a real life lesson of unethical accounting practices. An overstatement in Accounting especially revenue overstatement is mileading to Financial Statement users such as the stakeholders, which may result to wrong supplier decisions or wrong shareholder decisions or wrong management decisions. This is against the international Accounting standards and is punishable.
January 7th 2015 AN ACCA USER 220 Points 3 Flags
+1 Vote

nice one . more of this.

May 5th 2015 AN ACCA USER 2,590 Points
+1 Vote

We can relate the issue in this case with the paper 1. which can help us absorb key component easily i.e. corporate governance. forensic accounting issue, where the CSR , duty owe to the minority shareholder .
Besides, we can use this case as a reference when we study the issue-issue which need to remember .

September 6th 2015 AN ACCA USER 200 Points
+1 Vote

An excellent case study for P1 paper.

Ethics are getting more significance in accounting, reporting and governance for all those in position of responsibility as such scandals are coming on surface.

December 31st 2015 AN ACCA USER 8,190 Points
0 Votes

I agree P1, this issue can also feed into P3 from a Business Analysis point of view and of course P7 Advanced Audit.

January 25th 2016 AN ACCA USER 1,230 Points