Last September it was revealed that Tesco had overstated its first-half profits by over a quarter of a million pound sterling due to incorrectly booking payments from suppliers.
The Financial Reporting Council (FRC) in Britain are currently investigating Tesco’s accounts. This comes after a string of reforms in Britain and the European Union (EU). Companies are now forced to switch accountants every few years after some businesses had kept the same auditor for decades, bringing their independence into question.
“We will pay attention to the extent to which the audit team has challenged and checked the appropriateness of how these arrangements are accounted for,” said FRC executive director Paul George.
CARB have said it may start similar “themed” investigations into auditing practises in Ireland next year.
“CARB’s priorities for 2015, as agreed with the Irish Auditing and Accounting Supervisory Authority and the FRC, is to complete the statutory inspection cycle set out in the EU Statutory Audit Directive for all audit firms,” a spokesman said.
“It is not our plan in 2015 to adopt the themed approach of FRC to concentrate on specific sectors, but to review a wider range of engagements. We may adopt the themed approach in 2016 when we complete the statutory target.”
Of course while financial account audits are best left to the moneymen, this just goes to show how important it is for businesses to get trustworthy and independent auditors to give detailed, honest reports.
Here at Shelfwatch we’ve helped everyone from the Dublin Airport Authority (DAA) to Walkers Crisps, north and south of the border. We conduct numerous different audits including Price and Feature Audits, Retail Audits, Distribution Audits, and Promotional Compliance Audits.
If you’d like more information on our services please don’t hesitate to contact us.