KPMG Fined Record $25 Million After Employees Found Cheating at Exams

More than 500 people were involved in the fraudulent practices, including many at senior levels.

The logo of KPMG, a multinational tax advisory and accounting services company, hangs on a building in Berlin, Germany, on Jan. 22, 2021. Sean Gallup/Getty Images

U.S. audit regulator Public Company Accounting Oversight Board (PBOAC) imposed a record $25 million fine on audit and tax services company KPMG after several professionals at the firm were found to have cheated during internal exams, with the company allegedly being silently complicit in such practices.

“From 2017 to 2022, hundreds of professionals at KPMG Netherlands engaged in improper answer sharing” in tests conducted for the firm’s mandatory training courses, PCAOB said in an April 10 press release. The courses covered a variety of topics, including U.S. auditing standards and professional ethics. The exam cheating also involved partners and senior firm leaders, including Marc Hogeboom who at the time was KPMG’s Head of Assurance and a member of the management board, PCAOB said.