Tesco is UK no 3 grocery retailers who unfortunately, receive another blow to its financial annual profit due to accounting mistakes. Tesco’s error are revealed by a commercial manager who was doing a report on a financial statement. In this blog, it is said that Tesco had overstated profit by 23%. As a result, Tesco shares closed down 11.6 percent at 203 pence. For the persons in suspect, 3 senior executives are suspended.

In a huge company like Tesco, corruption and fraud often happens due to huge amount of expenses and revenue that need to be calculated. Auditors are hired to detect and prevent errors and fraud in accountant’s balance sheet. However, in this case, the mistakes pass through the thorough eyes of the auditors. Although the main cause of the problems are still not identified, personally I think it is due to corruption. Because as a professional, it is highly unlikely to make such a huge mistake in the middle of the work and not realizing it. The executives mind are usually covered and filled with desire and greed. Because of their power and authority, they may pressure employees to smuggle company’s profit and put it inside their own pockets. This can be categorized under situational pressure for accountants and perceived opportunity for the executives. Therefore, in this case, personally I think the accountants are not to be wronged and punished because they are forced to do so.