US EditionOSC Alleges Audit Failures by KPMG, Seeking up to $40M in Penalties
The watchdog says KPMG missed key loan-valuation checks and gave investors false confidence in four funds with a combined $1.7 billion in assets.
- On Tuesday, the Ontario Securities Commission alleged that KPMG LLP failed as an auditor in its 2019 and 2020 reports on four funds managed by Bridging Finance Inc., seeking up to $40-million in penalties.
- Bridging Finance Inc. was put into receivership by the Ontario Superior Court of Justice in April 2021 after mismanagement left investors with estimated losses of $1.3-billion, marking one of the largest investment manager failures in Canadian history.
- The regulator claims KPMG failed to scrutinize loan valuations, including a $129-million loan where the borrower repeatedly missed payments, and ignored evidence that businessman Gary Ng lied about collateral for $113-million in loans.
- In a statement, KPMG said it "firmly disagrees" with the allegations and will "vigorously defend" its work, according to Roula Meditskos, senior manager national communications and media relations at the firm.
- The Canadian Public Accountability Board flagged deficiencies in 20 per cent of KPMG audit files inspected last year, while an initial OSC hearing is scheduled for May 5.
21 Articles
21 Articles
The Toronto Star
OSC alleges audit failures by KPMG, seeking up to $40M in penalties
TORONTO - The Ontario Securities Commission is alleging KPMG failed as an auditor in its 2019 and 2020 reports on four funds managed by Bridging Finance Inc. and is seeking
OSC alleges audit failures by KPMG, seeking up to $40M in penalties – 105.9 The Region
TORONTO — The Ontario Securities Commission is alleging KPMG failed as an auditor in its 2019 and 2020 reports on four funds managed by Bridging Finance Inc. and is seeking up to $40 million in penalties. The regulator alleges the firm failed to perform sufficient and appropriate audit procedures over the most critical aspect of the financial statements – the valuation of the loans held within the funds. Bridging Finance Inc. and all its assets …
OSC Slams KPMG for Failing to Flag Bridging Finance Loan Valuations
The Ontario Securities Commission (OSC) has launched an enforcement action against KPMG LLP, alleging significant audit failures in its 2019 and 2020 reviews of four funds managed by Bridging Finance Inc. This move comes as the fallout from Bridging’s collapse continues to reverberate, with investor losses now estimated at $1.3 billion. The OSC claims KPMG […]
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