Having spent a depressingly long time both being a Deloitte auditor and now being an auditee in my life, in this specific case it’s clear there is no finger being pointed at BDO.Ah, the old adage about auditors. Treat them like mushrooms ....
The PLs underlying accusation is ultimately that some of the contracts City hold/held were only functional on paper and were just a vehicle for SM to pump equity money in.
BDO will have been presented a signed contract and seen funds coming into the bank and moved on. They may have even asked City the route of funds (unlikely) which as was seen at CAS there was a perfectly reasonable explanation for, so BDO not flagging any concerns doesn’t infer anything about them.