Accounting giant KPMG fined £20m after senior partners and managers cheated in exams

Accounting giant KPMG has been hit with the biggest fine ever imposed by the US audit watchdog after partners and senior managers cheated in professional exams.

The Dutch division of the Big Four was fined £20 million after hundreds of its staff were found to have inappropriately shared answers on mandatory training courses between 2017 and 2022.

The Public Company Accounting Oversight Board, which imposed the fine, also said KPMG Netherlands had repeatedly misled investigators about the misconduct.

“The growth of this widespread exchange of responses was possible because the company did not take adequate measures to monitor, investigate and identify potential misconduct,” the regulator said.

Among the staff members who were singled out by the US audit watchdog was Marc Hogeboom, a former director of the Dutch firm, who was fined £120,000.

He was also banned for life from working for a company that audits public American companies.

Both Hogeboom and KPMG Netherlands agreed to pay their respective fines without admitting or denying the findings.

Stephanie Hottenhuis, chief executive of KPMG Netherlands, said the regulator’s findings were “damning”.

She said: ‘I am deeply sorry that this misconduct has occurred at our company. Our customers and stakeholders deserve our apologies. They count on our quality and integrity as that is our role in society, with trust as our license to operate.’

KPMG Netherlands has implemented measures to check whether training tests are carried out correctly, Hottenhuis added.