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Sainsbury’s drops PwC after 20 years

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19th Jan 2015
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Sainsbury’s has dropped PwC as its auditor of 20 years while the Big Four firm faces an investigation into its role in the £263m Tesco accounting scandal.

According to a recent statement to the market, EY will now audit the supermarket giant’s accounts from March after a formal tender process was conducted last year, as stated in its 2014 accounts.

Sainsbury's said it decided to drop PwC following a recommendation by its audit committee and as a result of increased audit rotation. A Sainsbury’s spokesman also said the company flagged its intention to review its auditors last year and the decision was unrelated to events at Tesco.

Gary Hughes, chairman of Sainsbury's audit committee, said: “We would like to thank PwC, and specifically the Sainsbury's audit partners, for their significant contribution as the company's auditors over many years. Going forward we expect an orderly transition and look forward to working with EY into the future.”

Last month the FRC launched a probe into Tesco's accounting black hole and audit work undertaken by PwC. The matter is also being investigated separately by the Serious Fraud Office (SFO).

Back in September a team of forensic accountants from Deloitte established that the estimate of first half profits that Tesco gave the City the previous month was artificially inflated.

PwC has since said that companies were now changing auditors more frequently because of new regulations and that it had won as well as lost clients under the new regime.

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By carnmores
19th Jan 2015 17:36

Buggins turn

round and round we go .....

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