AFM response to KPMG exam fraud

As a supervisor of the Dutch accountancy sector, exam fraud has the explicit attention of the AFM. There is no room for doubt about the integrity and professional competence of accountants. Accountancy firms play an important role in society. For example, everyone must be able to rely on the opinion of an auditor in the audit report accompanying annual accounts. Investors, analysts, suppliers and other users of the financial statements base important (economic) decisions on it.

It is up to the audit firms to prevent exam fraud, to detect and tackle any abuses. The AFM has urged the PIE audit firms to pay extra attention to this. We are working together with the American regulator PCAOB.

Change behavior as soon as possible

AFM director Hanzo van Beusekom: 'I am shocked by the scale of this exam fraud and by the fact that this has happened at all levels of the organisation. Unfortunately, this is not a unique event. Internationally, several cases of exam fraud within the accountancy sector are known. This affects the integrity and professional competence of accountants.

Exam fraud is all about behavior and culture. We will take great care to ensure that this necessary change in behaviour will be implemented as soon as possible. We strongly call on employees within the sector to proactively report abuses. The sector is close to my heart. She must investigate exam fraud properly and quickly and address the underlying problems, after which we can hopefully continue on the path of restoring trust.'

The AFM can use various measures to enforce compliance with laws and regulations. Before we proceed with a measure, we always conduct thorough research. Then we determine which measure is most appropriate.