Big Four accounting firm Deloitte Canada comes out on top in first firm-specific inspection reports from audit watchdog

TORONTO, March 15, 2026 – Deloitte Canada had the lowest number of audit file deficiencies among the Big Four accounting firms according to newly released audit inspection reports from the Canadian Public Accountability Board. For the first time in its history, CPAB has published firm-specific audit inspection reports, which allows for direct comparisons between similarly sized accounting firms. 

One of the largest and most profitable Canadian accounting firms, Deloitte Canada audits more than 180 public companies (“reporting issuers”) that fall within the Canadian audit watchdog’s regulatory scope. As of December 31, 2024, the firm also audited 178 mutual funds and traded funds. 

CPAB inspected 13 of the accounting firm’s audit engagement files in 2025, and found just one (related to “business combinations”) with a “significant finding,” a deficiency rate of less than eight per cent. 

With just two out of 14 files inspected, PriceWaterhouseCoopers had the second lowest deficiency rate (14%), with its significant findings related to business combinations and inventory respectively. As of December 31, 2024, PwC Canada audited 271 reporting issuers and 1,918 funds. 

With two out of 11 files inspected, Ernst and Young had the third lowest deficiency rate (18%), with its significant findings related to long-lived assets, and revenue and related accounts. As of December 31, 2024, EY Canada audited 138 reporting issuers and 1,089 funds. 

KPMG Canada had the highest deficiency rate of the Big Four. With five significant findings out of 24 files inspected, one of which began in 2024 and carried over into 2025, KPMG had a deficiency rate of almost 21 per cent. As of December 31, 2024, KPMG audited 284 reporting issuers and 1,154 funds. 

As recently as 2023, as reported by Canadian Accountant, KPMG Canada has been one of the most successful national accounting firms in Canada, yet KPMG International Limited typically trails its Big Four rivals in global revenue. In 2022, the Canadian member firm came in second to Deloitte Canada in revenue, earning an estimated $2.385 billion. 

New inspection reports represent historic change in Canadian audit regulation

The publication of individual firm inspection reports marks a significant milestone in the evolution of CPAB’s public disclosure practices. Firm-specific inspection reports have been available from CPAB’s counterpart in the United States, the Public Company Accounting Oversight Board, for several years. The new practice required legislative change in Canada. 

CPAB celebrated the release this past week, stating that the initiative enhances transparency and provides stakeholders with greater insight. “Today’s achievement represents an important step forward in CPAB’s commitment to transparency,” said Sonny Randhawa, Chief Executive Officer of CPAB, upon their release. “Public disclosure of these reports strengthens confidence in audit quality and delivers meaningful information to investors, audit committee chairs, and other stakeholders across Canada.” 

Notably, the CPAB website has also been updated, and now features a firm-specific database available to the public, which can be used to easily access inspection reports. More reports will presumably be added to the database over time. CPAB's 2025 Annual Report is expected to be published at the end of March. 

Colin Ellis is a contributing editor to Canadian Accountant.