Tesco has witnessed consistent decline in sales over the past few years, which drastically disappointed one of the most integral investors, Waren Buffet, who has referred his investment in Tesco as “a huge mistake”.

“For Tesco, the mis-statement of its August profit forecast by as much as £250m just became a whole lot more serious.” (Ahmed). Two enforcement agencies are keeping a close tab on Tesco due to this incident. Namely, the Serious Fraud Office (which will investigate if there is evidence of fraudulent behaviour) and the Financial Reporting Council (which governs accounting rules). 

Mr Bailey, the chairman of the Parliamentary Business Committee, told the BBC that his reaction when he heard the news of the accounting error was of “disbelief”.He added he was not happy with Tesco’s response. “They should never have got themselves into this mess and it may be too little too late.”

From personal perspective, it is obvious that investing in Tesco is a mistake as the firm has absolutely no sign of growth and progress in sales and with huge competition through 7 Eleven, Tesco would not be able to survive in the market very long especially with the accounting errors occurring from within the firm itself.