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Settlement approved imposing $3.5 million penalty and reprimand on audit firm for GAAS failures.
Staff of the Ontario Securities Commission and the respondent audit firm jointly submitted a settlement agreement for approval regarding the respondent's audits of two investment funds.
The respondent admitted to failing to conduct its audits in accordance with generally accepted auditing standards, including failing to obtain sufficient audit evidence, lacking professional skepticism, and failing to complete required engagement quality control reviews.
The Commission approved the settlement, finding it in the public interest, and ordered the respondent to be reprimanded, pay an administrative penalty of $3.5 million, and pay costs of $500,000.
Motion for further and better witness summaries dismissed as premature at the pre-hearing stage.
Staff of the Ontario Securities Commission brought a motion seeking an order requiring BDO Canada LLP to deliver further and better witness summaries prior to a merits hearing.
Staff argued the summaries failed to disclose the substance of the anticipated evidence and did not properly identify the documents to which the witnesses would refer.
The Commission dismissed the motion, finding that at the pre-hearing stage, the summaries could not be deemed deficient on their face, particularly given BDO's concession that certain broad language in the summaries was nominal and of no real value.
