PwC Netherlands uncovers exam fraud

Exam fraud has been committed at PwC in the Netherlands, the accounting and consultancy firm reported this in its annual report for 2023 and 2024. Earlier, fraud with tests was discovered at industry peers Deloitte and KPMG, among others.

The exam fraud consisted of accountants sharing answers to mandatory tests, which is not allowed. "We know that this behavior is contrary to the integrity and trust that must form the basis of our business, and we are determined to tackle this problem thoroughly," PwC wrote in the annual report.

According to PwC, the extent of the fraud cannot yet be determined, as the investigation is still ongoing. The Netherlands Authority for the Financial Markets (AFM) asked all major accounting firms to conduct such an investigation. The study at PwC, which covers July 2017 to October 2023, is expected to be completed in the next financial year. That financial year runs until the end of June 2025.

PwC has taken measures against exam fraud. For example, the accounting firm has drawn up a code of conduct and has turned some e-learning courses into physical group meetings.

Furthermore, PwC calls employees who have committed exam fraud to account. This is done, for example, using "corrective" conversations and written warnings. Financial sanctions, loss of a position, or departure from the company are also part of the measures.

Initial research results into exam fraud at KPMG revealed that more than a hundred employees had shared answers to mandatory tests each year. For this reason, director Marc Hogeboom and chairman of the supervisory board Roger van Boxtel resigned last year. In addition, KPMG had to let go of several employees involved in fraud and the company imposed a sanction on other employees. At Deloitte, board member Rob Bergsman left last year due to an internal investigation into the fraud.