AuditorRecord

Public Company Accounting Oversight Board (PCAOB) ยท Netherlands

KPMG Accountants N.V.: fine by Public Company Accounting Oversight Board (PCAOB)

Audit or matter: None (firm conduct, training test answer sharing)

Decision date10 April 2024
SanctionFine
Amount as stated$25 million civil money penalty, with censure
StatusFinal
NetworkKPMG

What the regulator found

The PCAOB found that from 2017 to 2022 hundreds of KPMG Netherlands professionals engaged in improper answer sharing on mandatory training tests, that the firm failed to monitor or investigate it, and that it made inaccurate representations to PCAOB investigators. The PCAOB said the firm neither admitted nor denied the findings and consented to the order. It described the penalty as "the largest fine the PCAOB has ever imposed." The PCAOB noted that the Dutch AFM separately imposed enhanced supervision measures.1

Firm response

KPMG Netherlands said it had added controls on training tests and sanctioned people who took part. Its chief executive said "We have reviewed our approach to mandatory testing and made meaningful changes to our learning and development programs."2

Status: Final1

Sources

  1. Public Company Accounting Oversight Board, PCAOB Imposes Record $25 Million Fine on KPMG Netherlands and Bars a Firm Leader After Exam Cheating, Misinforming Investigators (10 April 2024)
  2. KPMG Netherlands, KPMG Netherlands reached settlement in answer sharing investigation (10 April 2024)