Over the past two months, the S&P/TSX composite index has dropped from about 13,000 to 8,395. Durin the same period, the Dow Jones Industrial Average plummeted from 4,000 to 3,018 while the S&P 500 dipped from 1,255 to 752.

In a report released Tuesday, Economic Outlook No. 84, the Organization for Economic Cooperation and Development predicted the gross domestic product of its 30 member nations (which include Canada, the U.S., Britain, Germany and Japan) would decrease by 1.4 per cent during the fourth quarter of 2008 and 0.4 per cent in 2009. The OECD forecasts two consecutive quarters of contraction during the first half of 2009, followed by growth.

"When KPGM looked at it within the current environment, this mega burn down that we have going on, they had to point out there's an obligation there," Hoey said. "It's not a discussion about opportunities, it's a discussion about risk."

KPMG refused to comment.

"Because of our professional obligation to maintain confidentiality concerning the affairs of our clients, KPMG cannot make any public comment on this situation," a spokesperson for the auditor said in an e-mail to Network World Canada.