SFO To Launch Probe Into Tesco's $424 Million Accounting Hole

The U.K.'s Serious Fraud Office is set to open a formal investigation into accounting practices at Tesco PLC , Sky News reported Wednesday. The supermarket chain revealed last week that it had overstated its profit forecast for the first half by �263 million ($424 million), saying the practices at the root of the error had happened in earlier periods, too. An official announcement and more details on the SFO probe could come in the next few days, Sky News reported. It follows a similar investigation launched by the U.K.'s Financial Conduct Authority, and the Financial Reporting Council has also said it is monitoring the matter. Tesco's chairman Richard Broadbent is stepping down amid the accounting scandal, and the retailer has suspended several executives. Tesco shares rose 2.4% in afternoon trading.

Copyright © 2014 MarketWatch, Inc.