UK accounting watchdog closes probe into former Tesco CFO

LONDON (Reuters) - Britain's accounting watchdog has closed an investigation into Laurie McIlwee, former chief financial officer of supermarket giant Tesco which hit a book-keeping crisis in 2014..

"The executive counsel to the FRC has concluded that there is no realistic prospect that a Tribunal would make an adverse finding in relation to the conduct of Mr Laurie McIlwee," the watchog said in a statement on Wednesday.

The Financial Reporting Council (FRC) opened the probe in 2014 after accounting errors in supplier contracts forced the grocer to suspend its U.K. boss and other senior executives, and admit it had overstated expected first half profit by

250 million pounds in a previous trading update.

McIlwee stepped down that year.

The FRC said it was still investigating the "preparation, approval and audit" of Tesco's accounts in the run up to the scandal.

The grocer's accounting firm during that period was PricewaterhouseCoopers.

The events prompted a major shake-up of Tesco under a new chief executive.

The Serious Fraud Office also opened an investigation into the accounting errors.

(Reporting by Huw Jones, editing by Carolyn Cohn/Ruth Pitchford)