The Canadian Public Accountability Board (CPAB), which regulates the accounting firms that audit publicly traded companies, found deficiencies in five of KPMG’s high-risk and complex files. EY and PwC both had two files with deficiencies, and Deloitte had one. (The Logic)

Talking point: It’s the first look inside Canada’s major auditing firms, which review the books of hundreds of companies and thousands of funds. The regulator gained permission for the first time to release reports on individual firms, and looked at 62 files that it deemed more high-risk. It gave KPMG the most thorough review of 24 files, compared to 11 at EY. As of 2024, KPMG and PwC were the most active firms, each performing 1,438 and 2,189 audits, respectively, of Canadian public companies and funds, the report said. All four firms told the regulator they will make changes to address the most significant findings. KPMG spokesperson Roula Meditskos said it is making substantial investments to strengthen its auditing practice and is “confident” they will yield improvements.