Deloitte board member in the Netherlands resigns amid exam fraud investigation

The Dutch arm of the accounting firm announced on Monday that its Chief People and Quality Officer and board member Rob Bergmans is stepping down due to an internal investigation concerning examination fraud. By the end of 2022, the Dutch financial markets watchdog Authority for Financial Markets (AFM) requested all major accounting firms to conduct internal investigations into examination fraud within their organizations.

Accounting organizations are responsible for verifying the accuracy of financial data in annual reports, which is crucial for companies, governments, and investors to make informed economic decisions. Earlier this year, examination fraud at the accounting and consulting firm KPMG was revealed.

Deloitte's investigation is still ongoing, but current findings prompted Bergmans to resign, according to a statement from the accounting firm. The investigation focuses on all mandatory internal and external learning events in the Netherlands over the past five years across the organization.

"I cannot but conclude that with the most recent insights from the investigation and the facts that have emerged from it, it is not in the interest of the organization if I stay on as a member of the Board of Directors or remain associated with Deloitte as a partner,” said Rob Bergmans in the statement.

The specifics of the fraud remain unclear. The remaining board members will temporarily assume Bergmans' duties until a replacement is found. The company expects to complete the investigation into the examination fraud by the end of this year.

AFM director Hanzo van Beusekom expressed in a press statement that he was “shocked and disappointed” about the situation at Deloitte. “Twice in a row, it has now become apparent that examination fraud also occurs at the top of large accounting firms, precisely where absolute exemplary behavior is expected. This also confirms that this is a phenomenon that is more widely spread,” he added.

He emphasized that this type of fraud is an international issue within the accountancy sector and urges employees to report any wrongdoing.