The Laurentian University Financial Scandal: Accounting and Audit Deficiencies*

Abstract

This case study investigates the shocking 2021 insolvency and resulting financial scandal at Laurentian University, a publicly funded post-secondary institution in the province of Ontario, Canada. The case exposes significant weaknesses in internal control, highlights the institution's inability to become financially sustainable, and serves as a warning about the importance of responsible governance. Using publicly available information, the case study focuses on the financial, governance, and auditing elements resulting from the scandal. The Laurentian scandal is a significant Canadian accounting event that merits attention from the accounting community in Canada and beyond because important lessons can be learned about financial management and corporate governance. The case study is best suited for analysis in an upper-year professional integration undergraduate course or at the graduate level in an assurance course. The case study is also valuable for those in academic governance.