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The Dutch Authority for the Financial Markets (AFM) announces that Deloitte, PwC and EY were fined for exam fraud.

The Public Company Accounting Oversight Board (PCAOB) has fined Deloitte and PwC $ 3 million and EY $ 2.5 million for (dealing with) exam fraud. This is the final phase of the investigation into exam fraud at the Big 4 – KPMG was previously fined.

The AFM and PCAOB work closely together: the firms are now under intensive supervision by the AFM and are responsible for conducting an in-depth investigation into the rootcauses and taking measures.

For at least five years, hundreds of professionals from Deloitte, PwC and EY cheated when taking exams, from employee to partner level. This involves, for example, sharing answers, receiving them without reporting them or taking tests together. These are exams that are partly also mandatory to maintain professional knowledge and skills for certification as an auditor.

Exam fraud is related to factors such as time pressure, commercial interests, the lack of direction and incorrect exemplary behaviour. Exams were a vulnerable spot in this system.

In determining the amount of the fines, the PCAOB took into account, among other things, the fact that all three firms have cooperated with the investigation, that they have already taken some measures and that they will be subject to intensive supervision by the AFM.

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