Tesco Director, Mark Armour, will not be participating in accountancy conduct investigation, says FRC

24th Sep 2014 13:28

The Financial Reporting Council (FRC) has confirmed that Tesco's non-executive director, Mark Armour, who sits on the FRC board, will not be participating in investigations over the supermarket's accounting blunder.The accountancy watchdog announced on Wednesday that it will be leading an investigation into the situation at Tesco, relating to the £250m shortfall in accounts. The watchdog group has been keeping hot tabs on Tesco's operations since the company revealed potential problems with its accounting policies on Monday.In response to public concern over Armour's position with the FRC, the government body released the following statement: "The FRC has strict rules on board and committee members not participating in discussions or activities where there is any conflict of interest. Mark Armour does not sit on the FRC's conduct committee which has responsibility for deciding whether to commence an investigation."On Wednesday, Tesco's share price plummeted for a third day running after Monday's announcement that the firm's new chief executive, Dave Lewis, had suspended four senior colleagues following concerns over accounting errors.The FRC will accompany the Serious Fraud Office in an investigation into Tesco's accounts. The investigation will determine whether regulatory action should be taken against Tesco. It has also been confirmed that the Financial Conduct Authority will also be involved in the process.