The Ontario Securities Commission (OSC) filed an Application for Enforcement Proceeding against KPMG LLP alleging audit failures in KPMG’s 2019 and 2020 audits of four funds managed by Bridging Finance Inc. The application alleges KPMG’s independent auditor’s reports to unitholders falsely represented that the funds’ financial statements were fairly presented in all material respects and that the audits were conducted in accordance with Canadian generally accepted auditing standards. The allegations focus on the valuation of loans held within the funds, described as the most critical aspect of the financial statements, where KPMG is alleged to have failed to perform sufficient and appropriate audit procedures. Bridging Finance Inc. and all its assets were placed into receivership by the Ontario Superior Court of Justice on April 30, 2021, one month after the last of the auditor’s reports was issued. A case management hearing before the Capital Markets Tribunal is scheduled for May 5, 2026 at 10:00 am.
Ontario Securities Commission 2026-03-31
Ontario Securities Commission files enforcement proceeding against KPMG over alleged Bridging Finance fund audit failures
The Ontario Securities Commission has commenced an enforcement proceeding against KPMG LLP over alleged audit failures in its 2019 and 2020 audits of four funds managed by Bridging Finance Inc. The regulator alleges KPMG’s audit reports falsely stated the funds’ financial statements were fairly presented and that audits complied with Canadian generally accepted auditing standards, particularly in relation to loan valuations, described as the most critical aspect of the financial statements.