As the Tesco profit-overstatement issue builds, it is inevitable that in the coming months most advance booking of C&T supplier investment will be challenged, because of the degree of judgement involved and the resulting scope for interpretation in accounting for retail businesses.
The Financial Times explains why auditing retailer accounts that are based on high-volume, low-value transactions can be very complex, resulting in auditors’ tendencies to focus instead on the systems, controls and processes involved.
Therefore there is a need on the part of C&T suppliers for robust procedures in proposing, implementing and measuring the results of all trade investment.
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