Netherlands arm of KPMG fined $25M for cheating in exams

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Netherlands arm of KPMG fined $25M for cheating in exams
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Staff followed US lead and shared answers after move to online testing

KPMG Accountants NV, the Netherlands-based arm of the global professional services firm, has been fined $25 million by that nation's Public Company Accounting Oversight Board for failing to prevent its financial auditors from cheating on exams.brought by the US Securities and Exchange Commission . Given KPMG brought in $36 billion in revenues worldwide last year, the fine levied in the Netherlands represents about seven hours of annual takings.

"Those quality control failures prevented from identifying that hundreds of professionals were involved in improper answer sharing – either by providing access to test questions or answers, or by receiving such access without reporting it – in connection with tests for mandatory internal training courses," the PCAOB explained in its disciplinary order.

The mandatory tests and training for staff have been conducted through online platforms since 2017 in the Netherlands. According to the PCAOB, most of the misconduct happened through email messages containing test contents or answers. And this behavior occurred despite awareness of the KPMG's $50 million settlement in the US.

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