US audit watchdog sanctions Canadian accounting firm Raymond Chabot Grant Thornton LLP

TORONTO, July 13, 2025 – Raymond Chabot Grant Thornton LLP took too long to report that it was the under the scrutiny of a Canadian regulator, according to a statement two days ago from the Public Company Accounting Oversight Board in the United States. The American audit watchdog issued a discipline order stating that it had censured the firm, imposed a $30,000 civil money penalty, and would require RCGT to comply with its reporting policies and procedures. 

Erica Y. Williams is the Chair of the Public Company Accounting Oversight Board in the United States.

“Failures to document required audit work or to make required disclosures on time undermine trust in the audit and prevent investors and others from accessing important information,” said PCAOB Chair Erica Y. Williams, in a press release that also singled out an American accounting firm based in Marietta, Georgia: Goldman & Company, CPA’s, P.C. 

According to the PCAOB, Raymond Chabot Grant Thornton failed to timely report the initiation and conclusion of three proceedings brought against it by a local regulator, in violation of PCAOB Rule 2203, Special Reports. Without admitting or denying the findings, both firms settled with the PCAOB and consented to the PCAOB’s orders and disciplinary actions. 

“Registered firms must comply with PCAOB rules and standards related to audit documentation and Form 3 reporting,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations. “These actions show that the PCAOB will hold firms accountable that fail to do so.” 

According to the US audit watchdog, proper audit documentation is essential to the audit process and investor protection, given that documentation serves as the written record that provides support for the representations in the auditor’s report. Form 3 reporting also provides key information for investors and others, including the initiation and conclusion of certain criminal, regulatory, administrative, or disciplinary proceedings against a firm or its personnel. 

Local regulator initiated proceedings against Raymond Chabot Grant Thornton

Raymond Chabot Grant Thornton is one of the largest accounting firms in the province of Quebec. As reported by Canadian Accountant, Raymond Chabot Grant Thornton retained its name and remained a member of Grant Thornton International when Grant Thornton rebranded as Doane Grant Thornton in 2024. (As reported by Canadian Accountant, the PCAOB fined Grant Thornton $30k that year for violation of audit committee communications rules in audits.) 

According to the PCAOB, three separate proceedings against the firm — pertaining to professional services performed for clients — were initiated and concluded by an unnamed, “local regulator,” between April 2022 and February 2024. The firm subsequently implemented changes to its policies and procedures to comply with PCAOB reporting requirements. 

As reported earlier this year by the Globe and Mail, Raymond Chabot Grant Thornton is one of nine mid-tier accounting firms annually inspected  by the Canadian Public Accountability Board. According to CPAB, the performance of the nine firms “improved markedly” in 2024, as reported in the regulator’s annual inspection findings report. 

Colin Ellis is a contributing editor to Canadian Accountant.