Valuation-related deficiencies were identified by the US Public
Company Accounting Oversight Board (PCAOB) during its annual review
of KPMG Canada’s audits from 2007.

The PCAOB carried out annual inspections at the firm’s Toronto
headquarters and four other offices, noting lapses in four separate
client audit reports. The deficiencies included failing to
sufficiently test the valuation of derivative instruments, failure
to test the completeness of overpayments and the appropriateness
and timing of revenue recognition.

In response, KPMG said it addressed each finding identified by
the PCAOB by either performing additional audit procedures or
improving audit documentation in a manner consistent with PCAOB
auditing standards and its internal policies and procedures.

The firm said in all instances its original audit conclusions
and reports on the issuers’ financial statements remained
unchanged.