Having spent the minimum 2 years as an auditor in order to obtain my license I couldn't get to the other side of the aisle quick enough.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.
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.
That said, please explain what the PL can offer as proof that any of City's contracts were "vehicles" to pump equity money in as personally I believe this to require a substantial amount of hard evidence placing a massively high burden of proof on the PL.
Also, if City were to have done this it would unequivocally constitute fraud from a legal standpoint, simple as. Do we really need to go over the obvious reasons?