\u00a0<\/p>\n<\/p>\n
Following a period of regulatory change under the leadership of Carol Paradine, the audit regulator is now\u00a0led by<\/a> Sonny Randhawa, CPA, CA. Randhawa served as the executive vice president, regulatory operations at the Ontario Securities Commission, where he lead four divisions collectively responsible for regulating and developing policy. He was appointed to CPAB effective March 2, 2026.<\/p>\n \u00a0<\/p>\n<\/p>\n KPMG has a enviable record of success in Canada. As reported<\/a> by Canadian Accountant, KPMG is the smallest of the Big Four accounting firms globally, yet KPMG Canada was second in revenue to Deloitte Canada as recently as 2023. As of December 31, 2024, according to CPAB, KPMG Canada audited 284 reporting issuers and 1,154 funds.<\/p>\n \u00a0<\/p>\n<\/p>\n KPMG Canada denies OSC allegations of audit failure<\/p>\n The accounting firm has issued a statement to media outlets in which it \u201cfirmly disagrees\u201d with the allegations. \u201cThese are allegations, not findings, and KPMG will vigorously defend our work throughout this process. KPMG takes its role and responsibilities as auditor seriously and remains committed to the highest standards of audit quality and professionalism. We stand behind our work as auditor of the Bridging funds.\u201d<\/p>\n \u00a0<\/p>\n<\/p>\n According to the OSC allegations<\/a>, which span 27 pages, KPMG LLP was engaged to be the independent auditor for the financial statements of four funds managed by Bridging Finance. As auditor, KPMG conducted eight fund audits over two fiscal years, failing in its representation of the valuation of loans held within each of the funds. \u201cKPMG\u2019s actions,\u201d say the OSC, \u201chad consequences for investors, who bought units of the funds at inflated prices and made investment decisions regarding their positions that they may not otherwise have made.\u201d<\/p>\n \u00a0<\/p>\n<\/p>\n In December 2025, a former auditor with KPMG Canada reached a settlement agreement<\/a> with Chartered Professional Accountants of Ontario, over her role in the financial collapse of Laurentian University. Laurie Bissonette agreed to pay a fine of $50k, two-thirds of the costs of the investigation, and could no longer use her fellowship designation (FCPA, FCA). The allegations were based largely on a special report by the Auditor General of Ontario.<\/p>\n \u00a0<\/p>\n<\/p>\n In the same year, CPAB\u2019s counterpart in the United States, the Public Company Accounting Oversight Board, reported<\/a> finding deficiencies in half of the 10 KPMG Canada audit inspections it conducted. Later that year, the US audit watchdog fined<\/a> KPMG Canada \u2014 along with eight other member firms of the KPMG global network \u2014 for repeated failures in accurately disclosing the participation of other accounting firms in KPMG audits.<\/p>\n \u00a0<\/p>\n<\/p>\n Colin Ellis is a contributing editor to Canadian Accountant.<\/p>\n![\"Canadian](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/09\/Logo-Small-BW.jpg\"){kind=logo}
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