FRC calls off probe into PwC over Tesco accounts scandal

In a statement, the FRC said there was “not a realistic prospect” of an “adverse finding” against the accounting giant. The inquiry related to Tesco's accounts for 2012, 2013 and 2014.

The FRC said it was continuing to look other accountants as part of the investigation. In 2014 Tesco was found to have overstated profits by £326m. The supermarket chain was fined £129m this year as a result.

As well as the fine to the SFO, Tesco agreed to a finding of "market abuse" by the Financial Conduct Authority for overstating its expected profits in a trading update in August 2014.

Following months of talks with the Serious Fraud Office, the supermarket giant reached a deferred prosecution agreement, which meant it would not be prosecuted as long as it met certain requirements.

Tesco also agreed to pay £85m compensation to investors who purchased shares and bonds in the company on or after the 29 August 2014 and who still held those securities when the statement was corrected on 22 September 2014.