Tesco has reportedly suspended four executives, after the company overstated its half year profit by an estimated £250m.
An investigation by Deloitte has been launched into the issue, and Tesco says it is now working to establish the impact it will have on the company.
The major multiple has outlined “accelerated recognition of commercial income, and delayed accrual of costs” as reasons for the error.
Dave Lewis, group chief executive, was called to the helm of Tesco on 1 September.
He said: “We have uncovered a serious issue and have responded accordingly. The Chairman and I have acted quickly to establish a comprehensive independent investigation.
“The Board, my colleagues, our customers and I expect Tesco to operate with integrity and transparency and we will take decisive action as the results of the investigation become clear.”
Lewis also said that Robin Terrell, Tesco’s multi-channel director, would be "stepping in and running and leading the UK leadership team."
The BBC reported that Tesco is believed to have suspended its UK finance director Carl Rogberg, food commercial director John Scouler and the head of food sourcing Matt Simister.
Tesco will also be working with Freshfields, its external legal advisors.
The supermarket said last month that it had said it expected trading profit for the six months to 23 August to be about £1.1bn, lower than management had expected.
The company has pushed back its interim results from 1 October to the 23 October 2014, where further update will be provided.