Friday 7th November, 2014

The accounting scandal at Tescos refuses to die down as a number of questions about the events that lead to the revelation of the accounting black hole remain unanswered. According to City lawyers the enquiry could take up to seven years, so the roots of the situation, and who is to blame will not be known for some time.

But The Telegraph asks - How big is the black hole? Why did Tesco and PwC sign off last year’s accounts when they included a warning about a “risk of manipulation” in commercial revenues? What prompted the SFO to launch its investigation? and wonders why suppliers are not missing profits.

As the plot thickens at Britain's biggest retailer, other organisations would do well to consider how their corporate culture and relationship with suppliers can affect not just their brand, but has a direct impact on their bottom line.