Raymond Chabot Grant Thornton gets clean audit inspection sheet from US audit watchdog

TORONTO, Dec. 30, 2025 – For the second time in a row, Raymond Chabot Grant Thornton (RCGT) has passed a US audit inspection with a clean sheet, a rare achievement for a Canadian accounting firm. The Public Company Accounting Oversight Board in the United States found no deficiencies in its inspection of two audits conducted in 2024 by RCGT, which is headquartered in Montréal, Quebec. 

As detailed in its recently released inspection report, the PCAOB examined two audits in which the firm was the principal auditor. In 2021, the US audit watchdog also found no deficiencies in the three RCGT audits it inspected. The accounting firm therefore earned a zero deficiency rate in its last two inspections. 

The PCAOB found instances of non-compliance with audit rules, specifically in terms of audit documentation and communication with audit committees. According to the inspection report, in one of two audits reviewed, the firm did not prepare an engagement completion document, and did not include all of the required information in its engagement completion document. 

In one of two audits reviewed, the firm did not make a required communication to the audit committee related to corrected misstatements, including discussing with the audit committee the implications that such corrected misstatements might have on the company’s financial reporting process. The firm also did not inquire of certain members of management about the risks of material misstatement, including fraud risks. In two instances, the firm did not file its report on Form 3 by the relevant deadline. 

RCGT sanctioned earlier this year by US audit watchdog

According to Les Affaires, Raymond Chabot Grant Thornton LLP is the largest accounting firm in Quebec, in terms of the number of employees including partners. The firm has served businesses in the province for 75 years with more than 2,900 partners in some 100 offices. In December, RCGT announced a major acquisition, adding PSB Boisjoli of Montreal, with more than 30 partners and over 200 employees.

In 2024, when Grant Thornton rebranded in Canada as Doane Grant Thorton, the Montreal-based firm retained its name. Doane 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.

In July 2025, as reported by Canadian Accountant, the PCAOB censured RCGT for taking too long to report that it was the under the scrutiny of a Canadian regulator. RCGT was required to pay a civil money penalty of $30,000 and required to comply with PCAOB reporting policies and procedures. 

RCGT celebrates US audit inspection results

While casual observers may wonder whether audit firms dismiss poor results, accounting firms are clearly pleased when they do well. “We celebrate such results,” states the response of Raymond Chabot Grant Thornton, “and consider this outcome to be consistent with our ongoing efforts to enhance audit quality through our continuous investment in our quality management system and monitoring process.” 

Colin Ellis is a contributing editor to Canadian Accountant.